Hill-Rom talks $425 million eight-year notes to yield in 5¾% area; pricing Tuesday

By Paul A. Harris

Portland, Ore., Aug. 18 – Hill-Rom Holdings Inc. talked its $425 million offering of eight-year senior notes (B1/BB-) to yield in the 5¾% area, according to an informed source.

Official talk comes at the tight end of the 5¾% to 6% whisper and tight to initial guidance in the high 5% to low 6% context, sources say.

Books close at noon ET on Tuesday, and the Rule 144A for life and Regulation S deal is set to allocate thereafter.

Goldman Sachs & Co. is the left bookrunner. J.P. Morgan Securities LLC, BofA Merrill Lynch and PNC Capital Markets are the joint bookrunners. Fifth Third Bank is the co-manager.

The notes become callable after three years at par plus 75% of the coupon.

The Chicago-based medical technology company plans to use the proceeds to help fund its acquisition of Skaneateles Falls, N.Y.-based medical diagnostic equipment manufacturer Welch Allyn Inc.

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