Home / Deal packs / Project Meridian
Project Meridian: Healthcare services unitranche
SAMPLE: fictional company, illustrative figures. Not a real borrower, deal or lender group.
Sponsor-backed, about $40m EBITDA, maintenance leverage covenant.
One deal, end to end
Documents arrive; agents run without anyone starting them; people decide at each gate. Each stage links to its use case.
1. SCREEN
In: CIM, teaser
Agents produce: Screen vs fund box; draft question list
Human gate: Go / no-go
Found: 6.6x vs a 5.5x limit at the $250m ask; screens in at about $210m.
2. UNDERWRITE
In: QoE, sponsor model, draft agreement
Agents produce: EBITDA bridge, add-back caps, covenant and LME table
Human gate: IC approves terms
Found: CIM EBITDA $41.8m vs $40.0m in the QoE; the lender sizes on the QoE.
3. CLOSE
In: Term sheet, final agreement
Agents produce: Term sheet vs agreement diff; covenants loaded to monitoring
Human gate: Counsel signs off
4. MONITOR
In: Monthly packs, compliance cert, agent notices
Agents produce: Headroom row, notice breaks, waiver triage, early-warning brief
Human gate: PM approves watchlist moves
Found: Certificate 5.12x, recomputed 5.29x; a first-time $0.6m add-back flagged.
5. REPORT
In: Monitoring history
Agents produce: Portfolio KPI table, LP and valuation inputs
Human gate: IR / CFO sign-off
- Each team re-reads and re-keys the same documentsDeal team → counsel → portfolio team → ops
- Hand-offs by email and spreadsheetContext lost at closing
- Documents land in the doc storeTrigger
- Shared extraction feeds every stageAutomated
- Stage outputs draftedAI draft, human review
- Gate decisions loggedHuman only
Supporting documents (SAMPLE inputs)
Term sheet
| Term | SAMPLE term sheet |
|---|---|
| Borrower | Project Meridian (fictional), sponsor-backed outpatient therapy and clinic platform, US |
| Facilities | $210.0m unitranche term loan; $40.0m delayed-draw term loan (24 months, 1.00% ticking fee on undrawn); $25.0m revolver |
| Closing leverage | 5.25x total on $40.0m Closing Date EBITDA |
| Pricing | Term SOFR + 5.00%, 0.75% floor; steps to +4.75% below 4.75x and +4.50% below 4.25x |
| OID / call protection | 99.0; soft call 102 / 101 in years 1 and 2 |
| Amortization | 1.00% per year, quarterly; excess cash flow sweep 50%, stepping down with leverage |
| Financial covenant | Maximum Total Net Leverage 7.00x through Q4 2026, 6.75x in 2027, 6.50x thereafter; tested quarterly; unrestricted cash netting capped at $10.0m |
| EBITDA add-backs | Run-rate cost savings and synergies capped at 20% of EBITDA (before the add-back), realised within 18 months; non-recurring items capped at 10% |
| Equity cure | 2 in any 4 consecutive quarters, 5 over the life; cure amount not counted for baskets |
| LME protections | No transfer of material IP to unrestricted subsidiaries; subordination of liens or payment needs each affected lender; guarantor released only if it ceases to be a subsidiary in a bona fide sale to a third party |
| Amendments | Required Lenders (>50%) generally; each affected lender for pricing, maturity, pro rata sharing and subordination |
CIM excerpt
“Meridian operates 142 outpatient clinics across 6 states with 78% commercial payer mix. Management Adjusted EBITDA of $41.8m reflects full run-rate contribution from 2025 de novo openings and identified procurement savings…”
CIM, Executive Summary p. 4 (SAMPLE). Note the CIM figure ($41.8m) is above the QoE figure ($40.0m): the lender sizes on the QoE.
QoE add-back schedule
| QoE item (LTM Dec 2025) | $m |
|---|---|
| Reported EBITDA | 33.6 |
| Sponsor monitoring fee | 1.2 |
| De novo clinic losses (6 clinics opened in 2025) | 2.1 |
| Pro forma acquired clinics (pre-close months) | 1.5 |
| Run-rate cost synergies (billing centralisation, procurement) | 1.4 |
| One-time integration and legal | 0.6 |
| QoE: normalise payer rate true-up | -0.4 |
| Closing Date EBITDA (QoE) | 40.0 |
Quarterly compliance certificate
| Compliance certificate, Q2 2026 (LTM Jun 2026) | $m |
|---|---|
| Reported EBITDA | 34.1 |
| Non-recurring items | 3.9 |
| Run-rate cost savings | 4.6 |
| De novo clinic losses | 2.3 |
| Sponsor monitoring fee | 1.2 |
| Consolidated EBITDA | 46.1 |
| Term loan + DDTL + revolver drawn | 245.9 |
| Less unrestricted cash (capped at 10.0) | -9.8 |
| Total Net Leverage (covenant 7.00x) | 5.12x |
Monthly financials
| Monthly pack, reported EBITDA $m | Q3 25 | Q4 25 | Q1 26 | Q2 26 | LTM |
|---|---|---|---|---|---|
| Sum of monthly P and L | 8.6 | 8.5 | 8.2 | 7.9 | 33.2 |
| Days sales outstanding | 48 | 50 | 53 | 57 | |
| Visits per clinic per day | 31.2 | 31.0 | 30.1 | 29.4 |
Market context for the SAMPLE terms
- Houlihan Lokey summer 2026 newsletter citing KBRA DLD: unitranche S+522 in July 2026; new-issue leverage 4.5x
- KBRA DLD via Business Wire: LBO unitranche leverage 5.7x (Feb 2026)
- ICLG / Proskauer-authored chapter: middle-market closing leverage 5.1x in 2025; cost-savings add-back caps still negotiated
- Shoosmiths (Oct 2025): synergy and exceptional-item caps typically 10% to 25% of EBITDA on mid-market deals
- ABF Journal citing an adviser’s Winter 2025 report: leverage covenant cushion of 30% or more from model
- Fortune via Yahoo Finance citing Noetica: IP-transfer blockers in 45% of private credit deals in Q3 2025
- Covenant-lite stayed under 4% of deals below $50m EBITDA in 1H 2026 (same Houlihan Lokey / KBRA DLD source), so a maintenance covenant is the norm at this size.
Next step
Not investment advice. Fictional company; any resemblance to a real business is unintended.