Tivity Health completed the refinancing of its senior credit facilities, which include a $100 million revolving credit facility, a $70 million term loan A facility a $150 million delayed draw term loan facility and an uncommitted incremental accordion facility of $100 million.
Proceeds of the revolving loans and delayed draw term loans may be used to repay outstanding indebtedness, including amounts payable upon any conversion of the company’s $150 million cash convertible senior notes due 2018.
SunTrust Bank served as administrative agent for the facility. SunTrust Robinson Humphrey, Fifth Third Bank, PNC Bank and Compass Bank were joint lead arrangers.
Borrowings under the credit agreement generally bear interest at variable rates based on a margin or spread in excess of either the one-month, two-month, three-month or six-month rate (or with the approval of affected lenders, the 12-month rate) for Eurodollar deposits or the greatest of the SunTrust Bank prime lending rate, the federal funds rate plus 0.50% and one-month LIBOR + 1.00%, as selected by the company. The LIBOR margin varies between 1.50% and 2.75%, and the base rate margin varies between 0.50% and 1.75%, depending on the company’s net leverage ratio. Extensions of credit under the agreement are secured by guarantees from all of the company’s active material subsidiaries and by security interests in substantially all of the company’s and such subsidiaries’ assets.
“We are pleased with our first-quarter financial results,” said Donato Tramuto, Tivity Health’s CEO. “Due to the strength of this performance and the visibility it gives us for the rest of 2017, we have increased our financial guidance for the full year.
“We are also pleased to announce a three-year renewal of our SilverSneakers contract with UnitedHealth Group, continuing a 20-year relationship with a partner who shares our commitment to active lifestyles. This renewal and many other renewals we have achieved to date are a clear indication of the value of both our brand and the services provided to our customers and their members through the SilverSneakers program.”
Tivity Health is a provider of fitness and health improvement programs, with capabilities in developing and managing network solutions.
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