Published on 1/20/2015 in the Prospect News High Yield Daily.
New Issue: HealthSouth sells upsized $400 million tap of 5¾% notes due 2024 at 102 to yield 5.34%
By Paul A. Harris
Portland, Ore., Jan. 20 – HealthSouth Corp. launched and priced an upsized $400 million add-on to its 5¾% senior notes due Nov. 1, 2024 (existing ratings Ba3/BB-) at 102 to yield 5.34% on Tuesday, according to a syndicate source.
The deal was upsized from $300 million.
The reoffer price came at the rich end of the 101.5 to 102 price talk.
BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets Corp., Regions Securities LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the joint bookrunners for the public offering.
The Birmingham, Ala.-based owner and operator of hospitals plans to use the proceeds to repay debt, to fund acquisitions, investments, capital expenditures and working capital and for general corporate purposes.
| Issuer: | HealthSouth Corp.
|
| Amount: | $400 million, increased from $300 million
|
| Maturity: | Nov. 1, 2024
|
| Security description: | Add-on to 5¾% senior notes due Nov. 1, 2024
|
| Bookrunners: | BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets Corp., Regions Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Coupon: | 5¾%
|
| Price: | 102
|
| Yield: | 5.34%
|
| Spread: | 354 bps
|
| First call: | Nov. 1, 2017 at 102.875
|
| Trade date: | Jan. 20
|
| Settlement date: | Jan. 29
|
| Existing ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 101.5 to 102
|
| Marketing: | Quick to market
|
| Original issue: | $275 million priced at par in September 2012
|
| Previous add-on: | $175 million priced at 103.625 to yield 5.053% on Sept. 4, 2014
|
| Fungibility: | New add-on notes will become immediately fungible with existing notes
|
| Total issue size: | $850 million
|
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