By Paul A. Harris
Portland, Ore., Nov. 16 – Envision Healthcare Corp. priced a downsized $550 million issue of eight-year senior notes (B3/B) at par to yield 6¼% on Wednesday, according to a market source.
The issue size was decreased from $750 million, as the company shifted $200 million of proceeds to its concurrent term loan, increasing the loan size to $3,495,000,000 from $3,295,000,000.
The yield printed at the tight end of the 6¼% to 6½% yield talk.
Barclays was the lead left bookrunner. J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds, together with proceeds from the concurrent term loan, will be used to pay off Envision Healthcare’s existing term loan and ABL facility, as well as to pay off the Amsurg Corp. 5 5/8% notes due 2020 and the Amsurg credit agreement, and for working capital, capital expenditures and other general corporate purposes.
The issuing entity will be New Amethyst Corp., which is to be renamed Envision Healthcare, a health care company with co-headquarters in Nashville, Tenn., and Greenwood Village, Colo.
| Issuer: | New Amethyst Corp., to be renamed Envision Healthcare Corp.
|
| Amount: | $550 million, decreased from $750 million
|
| Maturity: | Dec. 1, 2024
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Barclays
|
| Joint bookrunners: | J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Co-managers: | BMO Capital Markets Corp., Deutsche Bank Securities Inc., RBC Capital Markets
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 411 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2019, then callable at 104.688
|
| Equity clawback: | 40% at 106.25 until Dec. 1, 2019
|
| Trade date: | Nov. 16
|
| Settlement date: | Dec. 1
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¼% to 6½%
|
| Marketing: | Roadshow
|
| Co-Managers: | BMO, DB, RBC
|
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