By Rebecca Melvin
Princeton, N.J., Aug. 4 - LifePoint Hospitals, Inc. priced $200 million 20-year convertible debentures at par to yield 3.25% with an initial conversion premium of 35%.
The bonds came in at the middle of price talk for a coupon at 3.0% to 3.5% and at the cheap end of talk for the initial conversion premium of 35% to 40%.
The breakfast deal of senior subordinated debentures was launched before the open Thursday.
Joint bookrunners for the Rule 144A deal were Citigroup, Banc of America Securities LLC and UBS.
There is a $25 million greenshoe available.
The convertibles are callable at year 7.5, with puts at years 7.5, 9.5 and 14.5, according to a syndicate source.
LifePoint plans to use proceeds to repay borrowings under the company's senior subordinated credit facility. The remainder of the proceeds will be used for general corporate purposes.
Based in Brentwood, Tenn., LifePoint Hospitals is a provider of health care services in non-urban communities.
| Issuer: | LifePoint Hospitals, Inc.
|
| Issue: | Senior subordinated debentures
|
| Bookrunners: | Citigroup, Banc of America Securities LLC and UBS
|
| Amount: | $200 million
|
| Greenshoe: | $25 million
|
| Maturity: | 2025
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 35%
|
| Conversion price: | $61.22
|
| Conversion ratio: | 16.3339
|
| Call: | Non-callable for 7.5 years
|
| Put: | In years 7.5, 10 and 15
|
| Price talk: | 3.0%-3.5%, up 35%-40%
|
| Pricing date: | Aug. 4, after the close
|
| Distribution: | Rule 144A
|
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