June 28 (Bloomberg) -- Team Health Inc.’s $250 million term loan to refinance debt rose in its first trade, according to information provider Markit Ltd.
The seven-year debt, sold to investors at 99.5 cents on the dollar, began trading at 100 cents, Markit said.
Team Health, based in Knoxville, Tennessee, pays 2.75 percentage points more than the London interbank offered rate and the lending benchmark has a 1 percent floor, according to a person with knowledge of the deal who declined to be identified because it’s private.
The term loan was cut by $50 million, from $300 million and a term loan A and revolving line of credit were increased to $150 million and $175 million, respectively. JPMorgan Chase & Co. led the $575 million transaction.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t. A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. A term loan A is sold mainly to banks.
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