Published on 11/8/2011 in the Prospect News High Yield Daily.
New Issue: Health Management prices downsized $875 million 7 3/8% eight-year notes at par
By Paul A. Harris
Portland, Ore., Nov. 8 - Health Management Associates, Inc. priced a downsized $875 million issue of eight-year senior notes (B3/B-/) at par to yield 7 3/8% on Tuesday, according to an informed source.
The yield printed at the tight end of the 7½% area price talk.
Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., RBS Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the underwriters for the issue, which was downsized from $1 billion.
The Naples, Fla.-based operator of acute-care hospitals plans to use the proceeds, together with initial borrowings under its term loans and revolver, to repay a portion of its outstanding credit facilities, as well as for general corporate purposes.
| Issuer: | Health Management Associates, Inc.
|
| Amount: | $875 million, decreased from $1 billion
|
| Maturity: | Jan. 15, 2020
|
| Securities: | Senior notes
|
| Underwriters: | Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., RBS Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 568 bps
|
| Call features: | Callable on Jan. 15, 2016 at 103.688, 101.844, par on and after Jan. 15, 2018
|
| Equity clawback: | 35% at 107.375 until Jan. 15, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 18
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 7½% area
|
| Marketing: | Roadshow
|
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