By Paul A. Harris
Portland, Ore., June 14 – Ardent Health Services LLC priced a downsized $475 million issue of 9¾% eight-year senior notes (Caa2/CCC+) at 98.628 to yield 10% on Thursday, according to market sources.
The issue size was decreased from $535 million, as $60 million of proceeds were shifted to the term loan, increasing the loan size to $825 million from $765 million.
The coupon, reoffer price and yield came on top of final talk, which was revised from earlier 9¼% to 9½% yield talk. Initial talk was in the 9% area.
There were also covenant changes.
Joint bookrunner Barclays will bill and deliver. Jefferies LLC and BofA Merrill Lynch are also joint bookrunners.
Proceeds will be used to help refinance or otherwise extinguish Ardent's existing credit facilities and provide working capital and funds for other general corporate purposes.
Ardent Health is a Nashville, Tenn.-based owner and operator of hospitals.
| Issuer: | AHP Health Partners, Inc.
|
| Amount: | $475 million, decreased from $535 million
|
| Maturity: | July 15, 2026
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays (bill and deliver), Jefferies LLC, BofA Merrill Lynch
|
| Coupon: | 9¾%
|
| Price: | 98.628
|
| Yield: | 10%
|
| Spread: | 705 bps
|
| First call: | July 15, 2021 at 107.313
|
| Equity clawback: | 40% at 109.75 until July 15, 2021
|
| Trade date: | June 14
|
| Settlement date: | June 28
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9¾% at 98.628 to yield 10%, revised from 9¼% to 9½%
|
| Marketing: | Roadshow
|
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