In Brief: Bank of N.Y., DLJ Set $1B for Dialysis Firm

Bank of New York and Donaldson, Lufkin & Jenrette Inc. have co-arranged an aggregate $1 billion of bank credit facilities for Total Renal Care Holdings Inc., the company announced.

The loans have gone to market and have received firm commitments for the entire sum. The loans, which replace Total Renal Care's $400 million line of credit, consist of a seven-year, $800 million revolving senior credit facility and a 10-year, $200 million senior term facility. The seven-year revolving credit is priced at 7.07%, the 10-year loan at 6.8%.

The company has entered into two interest rate swaps, allowing it to substitute the fixed rates on the loans for a floating rate based on the London interbank offered rate.

The company will use the loans to finance growth through acquisitions and said it hopes to double its size in the next three years. It has already opened two new renal care centers and has agreements to acquire an additional four.

Although Donaldson Lufkin is new to syndicating bank loans, having entered the business about one year ago, it is no stranger to Total Renal Care. The investment bank was lead manager for three common stock offerings by Total Renal Care, including its initial public offering in 1995, according to Securities Data Co.

Total Renal Care is a Torrance, Calif., provider of integrated kidney dialysis services.

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