Nashville-based Tivity Health is taking on $500 million in credit facilities to pay off outstanding debt and to use for general corporate purposes.
The money will be split between $400 million in senior secured term loan B facilities and $100 million in senior secured revolving facilities, according to a press release, with interests rates at LIBOR plus 4.25 percent at most.
The proposed term facilities will close by early July. Morgan Stanley, Credit Suisse and Truist Bank are the joint lead arrangers for the transaction.
"The syndication of the new term facility was significantly oversubscribed, and as a result, achieved more favorable terms than the initial price talk," Adam Holland, Tivity chief financial officer, said in the release.
“Our new credit facilities will provide us with a solid financial foundation to grow the business with enhanced flexibility and extended tenor. The reduction in margin spread is expected to result in cash interest savings of over $3 million during the first 12 months, and the lower amortization is expected to reduce our annual required principal payments by $56 million, positioning us well to execute on our new strategic direction and fund growth initiatives."
Fast-growing IMAC Holdings has expanded into the Chicago suburbs with the purchase of an orthopedic medical center in Naperville, Illinois.
The Brentwood-based company closed on the deal Monday. Active Medical Center offers medical and physical rehabilitation services and, through the transaction, will be rebranded as the Mike Ditka IMAC Regeneration Center — IMAC's third such location in the Chicago metro area and first in the southwestern suburbs, according to a release.
IMAC earlier this year raised more than $15 million to pay off debt and grow its network of clinics. Approximately $9 million was set aside to launch “Regeneration Centers” that focus on lucrative orthopedic services.
“Active Medical Center’s Naperville practice is a great addition to our current treatment centers in the Chicago market. We look forward to expanding our Chicago presence with an established facility and talented team,” Jeff Ervin, IMAC chief executive officer, said in the release.