Acadia Healthcare driving by with $475 million of 8.5-year notes; initial talk mid-5% area

By Paul A. Harris

Portland, Ore., Sept. 29 – Acadia Healthcare Co., Inc. plans to price a $475 million offering of senior notes due 2029 (existing ratings Caa1/B-) in a Tuesday drive-by trailing a mid-morning conference call with investors, according to market sources.

Initial guidance has the Rule 144A and Regulation S for life deal coming to yield in the mid-5% area, according to a bond trader.

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

The 8.5-year notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback and a 101% poison put.

The Franklin, Tenn.-based behavioral health care provider plans to use the proceeds to prepay its tranche B-3 facility and for general corporate purposes, which may include additional debt repayment.

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