Lenders have provided a $350 million senior secured credit facility for HealthSpring Inc. (NYSE:HS).
HealthSpring, Nashville, Tenn., a company that owns and operates Medicare Advantage plans, says the new facility includes $175 million in 5-year term loans and a 4-year, $175 million revolving credit facility, $25 million of which was drawn at closing.
The interest rate on credit facility loans will be variable.
HealthSpring used cash on hand and cash from the credit facility to pay off $237 million in debt related to another credit agreement. The old credit agreement was set to mature Oct. 1, 2012.
HealthSpring had to pay $5 million to write off unamortized deferred financing fees related to the old facility, and it spent about $2 million on unwinding interest rate swaps related to the old facility.
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