On August 25, 2023, Prime Healthcare Services, Inc. closed a $425 million Senior Secured Revolving Credit Facility. Due to strong lender support, the new credit facility is expected to be upsized to $450 million in early September 2023.
The new credit facility refinances the existing Revolving Credit Facility that had an August 2024 maturity. The new Credit Facility closed with commitments from eight banks representing a strong mix of existing lender group holds as well as new investors representing large international, national, and regional banks.
“Prime is pleased to refinance the prior Credit Facility one year ahead of maturity at favorable rate terms in a challenging market reflecting the confidence of investors in Prime’s model,” said Steve Aleman, Prime Healthcare Chief Financial Officer. “Equally important is that the new Credit Facilities terms are flexible to support Prime’s growth strategies, including the company’s acquisition development activities, via a negotiated accordion feature that allows, at any time, for an increase to the maximum revolver amount of up to $175,000,000.”
The Revolving Credit Facility has a five-year maturity out to 2028 and terms were aligned to mature ahead of any notes issued pursuant to the Indenture Documents. The facility lead arranger, bookrunner and sole administrative agent was Royal Bank of Canada. Other participants included MUFG, Barclays, Siemens Financial Services, Texas Capital Bank, Key Bank, UMB Bank and City National Bank.
Prime Healthcare includes 45 hospitals and more than 300 outpatient locations in 14 states. Prime is one of the nation’s premier health systems recognized for quality and patient safety initiatives and performance. In July 2023, Prime Healthcare and its hospitals earned the distinction of “most socially responsible” by the Lown Institute. Prime Healthcare was recognized as a Top 10 Health System in the Nation for Social Responsibility and 25 Prime hospitals were recognized for outstanding social responsibility, receiving an “A” grade on the 2023-24 Lown Institute Hospitals Index. Prime’s hospitals have also been recognized among the “100 Top Hospitals” in the nation 66 times by Fortune/Merative, and named among US News and World Report’s Best Hospitals in many different disease specific areas.
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About Prime Healthcare and Prime Healthcare Foundation: Prime Healthcare and Prime Healthcare Foundation comprise 45 hospitals and more than 300 outpatient locations in 14 states. Prime is one of the nation’s premier health systems recognized for its quality and patient safety initiatives and performance. This year, Prime’s hospitals received more than 250 quality awards from Healthgrades, and Prime has more Patient Safety Excellence Award recipients from Healthgrades than any other health system for eight consecutive years. Its hospitals have also been recognized among the “100 Top Hospitals” in the nation 66 times by Fortune/Merative (formerly IBM Watson Health). Eighty-five percent of Prime’s hospitals earned an “A” or “B” from The Leapfrog Group this rating season, well above the national average. In addition, Prime has been recognized by The Joint Commission and National Quality Forum with the prestigious John M. Eisenberg Patient Safety and Quality Award.
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