By Paul Deckelman
New York, April 28 - Holding Medi-Partenaires SAS priced a €110 million add-on (B2/B) to its existing 7% senior secured notes due May 15, 2020 on Tuesday, high-yield syndicate sources said.
The bonds priced at 105.25, plus accrued interest from Nov. 15, 2013, generating a yield to maturity of 5.95%.
The French hospital operator's deal came to market via sole global coordinator Credit Suisse, which will handle billing and delivery, as well as joint bookrunners Commerzbank Capital Markets Corp., Credit Agricole and Goldman Sachs & Co.
The deal surfaced in the European debt markets on Monday and priced after a short roadshow that included a group meeting on Monday in Paris and a lunch on Tuesday in London.
The Regulation S/Rule 144A add-on notes, sold without registration rights, will have the same terms as the existing 7% notes, including call protection through May 15, 2016; the notes will be callable after that at 105.25, 103.5 and, finally, 101.75.
The add-on deal priced exactly one year to the day after the original €385 million of those notes came to market on April 29, 2013, pricing at par following a short roadshow.
The notes are part of the financing for the acquisition of Medi-Partenaires by Bridgepoint Capital, a London-based private equity firm, which plans to merge it with another health-care company in its portfolio, Medipole Sud Sante. The proposed merger would create the second-largest private hospital operator in France with a network of 60 facilities and 8,500 employees, generating estimated pro forma combined revenues of about €830 million.
The notes will initially be issued on a temporary basis by Financiere Medicis Lux SA; when the acquisition deal closes, the temporary notes will be automatically exchanged for an equal principal amount of notes issued by Medi-Partenaires under the indenture governing its existing 7% notes.
Should that acquisition not take place by Dec. 31, 2014, the temporary notes will be subject to special mandatory redemption requirements.
| Issuers: | Financiere Medicis Lux SA (initial temporary issuer), Holding Medi-Partenaires SAS (permanent post-exchange issuer)
|
| Amount: | €110 million
|
| Proceeds: | €115.775 million
|
| Maturity: | May 15, 2020
|
| Securities: | Add-on existing €385 million senior unsecured notes (brings outstanding face amount to €495 million)
|
| Sole global coordinator: | Credit Suisse (handles billing and delivery)
|
| Joint bookrunners: | Commerzbank Capital Markets Corp., Credit Agricole and Goldman Sachs & Co.
|
| Coupon: | 7%
|
| Price: | 105.25
|
| Yield to maturity: | 5.95%
|
| Spread: | 516 basis points over 3.00% DBR July 2020
|
| Call protection: | Non-callable until May 15, 2016, then at 105.25, 103.5 and, finally, at 101.75
|
| Trade date: | April 29
|
| Settlement date: | May 7
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Regulation S and Rule 144A, without registration rights
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
