Published on 8/4/2015 in the Prospect News High Yield Daily.
New Issue: HealthSouth prices upsized $350 million tap of 5¾% senior notes due 2024 at 100.5
By Paul A. Harris
Portland, Ore., Aug. 4 – HealthSouth Corp. priced an upsized $350 million add-on to its 5¾% senior notes due Nov. 1, 2024 (B1/B+) at 100.5 to yield 5.678% on Tuesday, according to a market source.
The deal was upsized from $300 million.
The reoffer price came at the rich end of the 100 to 100.5 price talk and also on top of earlier guidance, according to market sources.
Goldman Sachs & Co., BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The Birmingham, Ala.-based provider of post-acute health care services plans to use the proceeds, along with cash on hand and borrowings under its senior secured credit facility, to fund the acquisition of the operations of Reliant Hospital Partners, LLC and affiliated entities.
| Issuer: | HealthSouth Corp.
|
| Amount: | $350 million, increased from $300 million
|
| Proceeds: | $351.75 million
|
| Maturity: | Nov. 1, 2024
|
| Security description: | Add-on to 5¾% senior notes due Nov. 1, 2024
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Coupon: | 5¾%
|
| Price: | 100.5
|
| Yield: | 5.678%
|
| First call: | Nov. 1, 2017 at 102.875
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 7
|
| Ratings: | Moody's: B1
|
| Standard & Poor’s: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 100 to 100.5
|
| Marketing: | Quick to market
|
| Original issue: | $275 million issue priced at par in September 2012
|
| First previous add-on: | $175 million add-on priced at 103.625 to yield 5.053% on Sept. 4, 2014
|
| Second previous add-on: | $400 million add-on priced at 102 to yield 5.34% on Jan. 20, 2015
|
| Total issue size: | $1.2 billion
|
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