Envision Healthcare accelerates timing on $1.63 billion notes offer; pricing Friday

By Paul A. Harris

Portland, Ore., Sept. 27 – Envision Healthcare Corp. accelerated timing on its $1,625,000,000 offering of eight-year senior notes (Caa1), according to market sources.

The deal is now on deck for Friday, cutting short a roadshow that had been expected to continue into the early part of the Oct. 1 week.

As the market awaits official price talk, the deal is shaping up at 8¾% to 9%, according to sources, one of whom saw a sizable order at the wide end of that range.

Earlier in the week the deal was heard to be going very well at the initial price talk in the high 8% area.

Citigroup Global Markets Inc. is the left bookrunner. Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Barclays, Goldman Sachs & Co. LLC, Jefferies LLC, UBS Investment Bank, KKR Capital Markets, SG CIB, RBC Capital Markets LLC, HSBC Securities, Mizuho Securities USA Inc., BMO Securities, SunTrust Robinson Humphrey Inc. and Credit Agricole CIB are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

Proceeds will be used to help fund the buyout of the company by KKR for $46.00 per share in cash, or about $9.9 billion including the assumption or repayment of debt.

The initial issuing entity will be Enterprise Merger Sub Inc., which will become Envision Healthcare Corp. when the buyout closes.

Envision is a Nashville, Tenn.-based provider of physician-led services and post-acute care and ambulatory surgery services.

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