American Renal talks $225 million eight-year secured notes to yield 8½%-8¾%, at discount

By Paul A. Harris

St. Louis, April 26 - American Renal Holdings Inc. talked its $225 million offering of eight-year senior secured notes (B2/B) to yield 8½% to 8¾% and to price at a to-be-determined discount, an informed source said on Monday.

The books close at noon ET on Tuesday. The deal is set to price Tuesday afternoon.

Bank of America Merrill Lynch, Barclays Capital Inc. and Wells Fargo Securities are the joint bookrunners for the Rule 144A with registration rights deal.

The notes come with three years of call protection and a 101% poison put.

Proceeds are to be deposited into an escrow account and, upon release, be used in conjunction with a cash equity investment from Centerbridge Partners LP to fund the acquisition of the company from Pamlico Capital. Proceeds also will be used to repay debt.

American Renal is a Beverly, Mass.-based provider of kidney dialysis services.

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