By Paul A. Harris
St. Louis, April 27 - American Renal Holdings Inc. priced an upsized $250 million issue of 8 3/8% eight-year senior secured notes (B2/B/) at 99.28 to yield 8½% on Tuesday, according to an informed source.
The yield printed at the tight end of yield talk. The price talk was for an 8½% to 8¾% all-in-yield at a to-be-determined discount.
Bank of America Merrill Lynch, Barclays Capital Inc. and Wells Fargo Securities were the joint bookrunners.
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.
| Issuer: | American Renal Holdings Inc.
|
| Face amount: | $250 million, increased from $225 million
|
| Proceeds: | $248.2 million
|
| Maturity: | May 15, 2018
|
| Securities: | Senior secured notes
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Wells Fargo Securities
|
| Coupon: | 8 3/8%
|
| Price: | 99.28
|
| Yield: | 8½%
|
| Spread: | 513 bps
|
| Call protection: | Make-whole at Treasuries plus 50 bps until May 15, 2013, then callable at a premium
|
| Equity clawback: | 35% at 108.375 until May 15, 2013
|
| Trade date: | April 27
|
| Settlement date: | May 7
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 8½% to 8¾% all-in yield, at a to-be-determined discount
|
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