By Paul A. Harris
St. Louis, Feb. 12 - AmeriPath Inc. repriced an $80.3 million proceeds add-on to its 10½% senior subordinated notes due April 1, 2013 on Thursday after Moody's downgraded the notes to Caa1 from B3, market sources said.
The new price is 106.0, resulting in a yield to worst of 9.324%. Price talk was in the area of 107.
The face amount of the add-on was $75 million.
The add-on initially priced on Feb. 4 at 107.125, which had resulted in a 9.116% yield to worst.
Credit Suisse First Boston, Deutsche Bank Securities, Citigroup and Wachovia Securities were joint bookrunners on the Rule 144A add-on.
Proceeds will be used to repay bank debt.
The original $275 million issue priced on March 13, 2003.
The issuer is a Riviera Beach, Fla.-based provider of cancer diagnostics, genomics and related information services.
| Issuer: | Ameripath Inc.
|
| Face amount: | $75 million add-on
|
| Proceeds: | $80,343,750
|
| Security description: | Add-on to the 10½% senior subordinated notes due April 1, 2013
|
| Maturity: | April 1, 2013
|
| Bookrunners: | Credit Suisse First Boston, Deutsche Bank Securities, Citigroup, Wachovia Securities
|
| Coupon: | 10½%
|
| Price: | 106.0 (decreased from 107.125)
|
| Yield to worst: | 9.324% (increased from 9.116%)
|
| Spread: | 578 basis points
|
| Call features: | Callable after April 1, 2008 at 105.250, 103.500, 101.750, par on April 1, 2011 and thereafter
|
| Equity clawback: | Until April 1, 2006 at 110.50 for up to 35%
|
| Pricing date: | Feb. 12
|
| Settlement date: | Feb. 17, with accrued interest
|
| Ratings: | Moody's: Caa1, downgraded from B3
|
| Standard & Poor's: B-
|
| Price talk: | 107 area
|
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