BASIS POINT-Primary Health A$2.5 billion loan to launch

SYDNEY, Feb 22 (Reuters Basis Point) - A A$2.5 billion loan
($2.3 billion) to fund Primary Health Care Ltd's (PRY.AX: Quote, Profile, Research, Stock Buzz)
takeover of Australian healthcare rival Symbion Health Ltd
SYB.AX will move to the sub-underwriting stage next week,
sources said.

The all-senior 364-day term deal, fully underwritten by the
leads, is priced at 225bp over BBSY and the all-in yield is
above 300bp, they said.

The mandated lead arrangers are ABN AMRO Australia, Calyon
(CAGR.PA: Quote, Profile, Research, Stock Buzz), Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz), nabCapital (NAB.AX: Quote, Profile, Research, Stock Buzz) and
Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz).

Primary won control of Symbion with a A$2.7 billion offer
after a protracted takeover battle that centred on Symbion's
medical testing assets, a lucrative prize in a rapidly ageing
country where the use of private medical insurance is growing.

Bank appetite for the loan could be substantial, the
sources said, because of its rich pricing and because lenders
are typically comfortable with healthcare borrowers as it is a
mature sector that is difficult for newcomers to enter.

The leverage on the loan is 50:50, calculated on a debt to
market capitalisation basis, although this could be nearly
halved through any sale of Symbion assets.

Primary has said it plans to sell some Symbion assets.

Separately, ABN AMRO, Credit Suisse and Deutsche Bank have
fully underwritten a A$1.41 billion entitlement offer by
Primary to help finance the proposed acquisition.

Some A$1.158 billion of the offer has already been raised
through institutional investors and a retail offering will open
on Feb. 22.
($1=A$1.09)
(Reporting by Sharon Klyne)