LifePoint talks $500 million seven-year convertibles at 3.25%-3.75%, up 32.5%-37.5% for Tuesday

By Kenneth Lim

Boston, May 21 - LifePoint Hospitals Inc. plans to price $500 million of seven-year convertible senior subordinated notes on Tuesday after the market closes, talked at a coupon of 3.25% to 3.75% and an initial conversion premium of 32.5% to 37.5%.

The convertibles will be offered at par.

There is an over-allotment option for an additional $75 million.

Citigroup is the bookrunner of the registered offering.

The convertibles will be non-callable and may not be put.

There will be a contingent conversion trigger at 130% of the conversion price.

The convertibles will have dividend and takeover protection.

There will be a net-share settlement feature.

LifePoint, a Brentwood, Tenn.-based non-urban hospital company, said it will use the proceeds of the deal to repay an outstanding revolving loan that bears an annual interest of 7.11% and an outstanding term loan that bears an average annual interest of 6.97%.

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