Investors have received allocations of the $875 million, seven-year term loan B for Athletico Physical Therapy that priced at the tight end of talk at a spread of 425 basis points over the secured overnight financing rate plus a credit spread adjustment, with a 0.5% floor and an original issue discount of 99.5 via lead arrangers BofA Securities and BMO Capital Markets, according to sources. The term loan entered the aftermarket at a 99.75/100.25 level. Proceeds from the deal will be used to back the acquisition of Pivot Health Solutions, refinance existing debt and add cash to the balance sheet. The $550 million acquisition will also be funded with $220 million of new sponsor equity, rating agencies noted. In addition to the new term loan, financing will include a $100 million revolver due 2027 that is expected to be undrawn at close. Athletico Physical Therapy, a portfolio company of BDT Capital Partners, provides orthopedic rehabilitation services to communities, employers and athletes.
Terms:
| Borrower | Accelerated Health Systems LLC and Athletico Management LLC |
| Issue | $875 million first-lien term loan |
| UoP | M&A, refinancing |
| Spread | Sofr+CSA+425 |
| Sofr+CSA floor | 0.50% |
| Price | 99.50 |
| Tenor | 7-year |
| YTM | 4.93% |
| Four-year yield | 4.98% |
| Call protection | 101 soft call for 6 months |
| Corporate ratings | B/B2 |
| Facility ratings | B/B2 |
| Recovery ratings | 3 |
| Financial covenants | None |
| Arrangers | BofA/BMO |
| Admin agent | BofA |
| Px Talk | Sofr+CSA+425-450/0.5%/99.5 |
| Sponsor | BDT Capital Partners |
| Notes | CSA: 10/15/25 (1-month, 3-month, 6-month). |