By Paul A. Harris
Portland, Ore., Oct. 14 - Emdeon Inc. priced a $375 million issue of eight-year senior notes (Caa1/CCC+/) at par to yield 11% on Friday, according to an informed source.
The yield printed at the tight end of the 11% to 11¼% price talk.
Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and SunTrust Robinson Humphrey were the joint bookrunners.
Timing on the deal was moved ahead. Initial timing would have extended the roadshow into the early part of the Oct. 17 week.
The notes, which were issued via special purpose vehicle Beagle Acquisition Corp., will rank pari passu with the $375 million of the 11¼% senior notes due 2020 that affiliates of Goldman Sachs have agreed to purchase, as previously reported.
Proceeds from the 11% notes and the 11¼% notes are part of the financing for the buyout of Emdeon by Blackstone Capital Partners VI LP and Hellman & Friedman LLC for $19.00 per share in cash in a transaction that is valued at about $3 billion.
In addition to proceeds from that $750 million amount of unsecured debt, financing for the LBO includes a $1.224 billion term loan, a $125 million revolver, a planned $870 million of equity and the rollover of about $330 million of equity.
Emdeon is a Nashville-based provider of revenue and payment cycle management services, connecting payers, providers and patients in the U.S. health care system.
| Issuer: | Beagle Acquisition Corp., to be merged into Emdeon Inc.
|
| Amount: | $375 million
|
| Maturity: | Dec. 31, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., SunTrust Robinson Humphrey
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Spread: | 913 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until Dec. 31, 2015, then callable at 105.5, 102.75, par on and after Dec. 31, 2017
|
| Equity clawback: | 35% at 111 until Dec. 31, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 14
|
| Settlement date: | Nov. 2
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 11% to 11¼%
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
