By Ronda Fears
Boston, May 23 - LifePoint Hospitals Inc. priced $500 million of seven-year convertible senior subordinated notes on Tuesday to yield 3.5% with an initial conversion premium of 36.5%. The convertibles were offered at par.
The issue priced at the midpoint of yield guidance for a coupon of 3.25% to 3.75% and at the aggressive end of premium talk of 32.5% to 37.5%.
There is an over-allotment option for a further $75 million.
Citigroup was bookrunner of the registered offering.
The convertibles are non-callable. There are no puts.
The issue offers takeover protection.
Brentwood, Tenn.-based LifePoint, a rural hospital operator, said it will use proceeds to repay an outstanding revolving loan that bears an annual interest rate of 7.11% and an outstanding term loan that bears an average annual interest rate of 6.97%.
| Issuer: | LifePoint Hospitals Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunner: | Citigroup
|
| Co-managers: | UBS, Banc of America, Deutsche Bank and Raymond James
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | May 15, 2014
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion premium: | 36.5%
|
| Conversion price: | $51.79
|
| Conversion ratio: | 19.3095
|
| Call: | Non-callable
|
| Puts: | No
|
| Takeover protection: | Yes
|
| Dividend protection: | No
|
| Pricing date: | May 22
|
| Settlement date: | May 29
|
| Distribution: | Registered
|
| Guidance: | 3.25%-3.75% yield, up 32.5%-37.5%
|
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