By Paul A. Harris
Portland, Ore., March 1 - American Renal Holdings Co., Inc. priced an upsized $135 million issue of five-year senior PIK toggle notes (Caa2/CCC+/) at 98.00 in a quick-to-market Tuesday deal, according to an informed source.
The notes pay a cash coupon of 9¾% and a PIK coupon of 10½%.
The cash yield is 10.273%, and the PIK yield is 10.944%.
The cash yield came toward the wide end of the cash yield talk of 10¾% to 11%.
Bank of America Merrill Lynch and Barclays Capital Inc. were the joint bookrunners for the issue, which was upsized from $125 million.
The Beverly, Mass.-based kidney dialysis services provider will use the proceeds to fund a cash distribution to its existing equity holders.
| Issuer: | American Renal Holdings Co., Inc.
|
| Face amount: | $135 million, increased from $125 million
|
| Proceeds: | $132.3 million
|
| Maturity: | March 1, 2016
|
| Securities: | Senior PIK toggle notes
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc.
|
| Cash coupon: | 9¾%
|
| PIK coupon: | 10½%
|
| Price: | 98
|
| Cash yield: | 10.273%
|
| PIK yield: | 10.944%
|
| Call features: | Make-whole call at Treasuries plus 50 bps for first two years, then callable at 105
|
| Trade date: | March 1
|
| Settlement date: | March 4
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk | 10¾% to 11% cash yield
|
| Marketing: | Quick to market
|
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