Acadia Healthcare driving by with $450 million eight-year notes; initial talk low 6% area

By Paul A. Harris

Portland, Ore., June 10 – Acadia Healthcare Co., Inc. plans to price a $450 million offering of eight-year senior notes (existing ratings Caa1/B-) in a Wednesday drive-by following a mid-morning conference call with investors, according to market sources.

Initial talk has the notes coming to yield in the low 6% area, according to a bond trader.

BofA Securities Inc. is the left bookrunner. Citigroup Global Markets Inc, Goldman Sachs & Co. LLC, BMO Capital Markets Corp., Capital One Securities Inc., Credit Agricole CIB, Fifth Third Securities Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, MUFG and Regions Securities LLC are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Franklin, Tenn.-based behavioral health care services provider plans to use the proceeds plus cash on hand to redeem its 6 1/8% senior notes due 2021 and 5 1/8% senior notes due 2022 in full.

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