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Business News/ News / Acentra Health Slashes Interest Rate in Private Debt Refinancing
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Acentra Health Slashes Interest Rate in Private Debt Refinancing

Acentra Health LLC cut its interest rate on a term loan, part of a larger transaction with a group of private credit lenders that refinanced existing loans and raised additional debt.

Acentra Health Slashes Interest Rate in Private Debt RefinancingPremium
Acentra Health Slashes Interest Rate in Private Debt Refinancing

(Bloomberg) -- Acentra Health LLC cut its interest rate on a term loan, part of a larger transaction with a group of private credit lenders that refinanced existing loans and raised additional debt.

The healthcare technology solutions company owned by Carlyle Group Inc. will now have a margin 5.5 percentage points above the Secured Overnight Financing Rate on a $666 million loan, according to people with knowledge of the matter who asked not to be named discussing a private transaction. The previous margin was 6.5 percentage points. 

Acentra is the latest company to lock in cheaper borrowing costs in private credit as direct lenders and banks compete to provide debt financing to firms. 

The firm also raised an incremental $35 million term loan at a discounted price of 98.5 cents and with the same 5.5-percentage-point margin over SOFR as the $666 million loan, the people said. Proceeds will repay Acentra’s revolving credit facility. They added that the company obtained a $100 million delayed-draw term loan at the same pricing, which will be used for future acquisitions. 

Oak Hill Advisors led the transaction and served as the administrative agent, it said in a statement earlier this week that didn’t disclose the financing’s details. Brinley Partners, Antares Capital, MidCap Financial and Stone Point Credit also participated, according to the people with knowledge of the matter.

Representatives for Carlyle, Brinley, MidCap, Oak Hill and Antares declined to comment. Representatives for Stone Point didn’t immediately respond. 

Acentra left in place an existing $75 million revolving credit facility as well as a $50 million term loan from last year that has a margin of 5.75 percentage points over SOFR.

The firm operates in 46 states and provides technology solutions and tech-enabled services to state and federal health agencies to administer healthcare programs such as Medicaid.

--With assistance from Gillian Tan.

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.

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Published: 19 Apr 2024, 02:02 AM IST
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