Published on 4/16/2020 in the Prospect News High Yield Daily.
New Issue: Change Healthcare prices upsized $325 million tap of 5¾% notes due 2025 at par
By Paul A. Harris
Portland, Ore., April 16 – Change Healthcare Holdings, LLC and Change Healthcare Finance, Inc. priced an upsized $325 million add-on to their 5¾% senior notes due March 1, 2025 (Caa1/B-) at par to yield 5¾% in a Thursday drive-by, according to syndicate source.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Barclays, J.P. Morgan Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets Corp., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, ING Financial Markets LLC, MUFG and SunTrust Robinson Humphrey Inc.
The issue size increased from $200 million.
The issue price came at the rich end of the 99.5 to par price talk.
The Nashville, Tenn.-based health care information and technology company plans to use the proceeds for general corporate purposes, which may include the acquisition of companies or businesses, including the potential acquisition of eRx Network, for debt repayment and refinancing, for working capital and for capital expenditures.
| Issuers: | Change Healthcare Holdings, LLC and Change Healthcare Finance, Inc.
|
| Amount: | $325 million, increased from $200 million
|
| Maturity: | March 1, 2025
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| Security description: | Add-on to 5¾% senior notes due March 1, 2025
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | Barclays, J.P. Morgan Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets Corp., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, ING Financial Markets LLC, MUFG and SunTrust Robinson Humphrey Inc.
|
| Co-manager: | Blackstone
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| Coupon: | 5¾%
|
| Price: | Par
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| Yield: | 5¾%
|
| Spread: | 539 bps
|
| Call: | Make-whole call at par plus 50 bps until March 1, 2020, then callable at 102.875
|
| Equity clawback: | 40% at 105.75 until March 1, 2020, revised from 100% at percentages of the coupon
|
| Trade date: | April 16
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| Settlement date: | April 21
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| Ratings: | Moody's: Caa1
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 99.5 to par
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| Marketing: | Drive-by
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| Original issue: | $1 billion priced in February 2017
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| Total issue size: | $1.325 billion
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