Published on 2/5/2015 in the Prospect News High Yield Daily.
New Issue: Acadia Healthcare upsizes to $375 million, prices eight-year notes at par to yield 5 5/8%
By Paul A. Harris
Portland, Ore., Feb. 5 – Acadia Healthcare Co. Inc. priced an upsized $375 million issue of eight-year senior notes (B3/B-) at par to yield 5 5/8% on Thursday, according to a syndicate source.
The deal was increased from $300 million.
The yield printed at the tight end of yield talk that had been set in the 5¾% area.
BofA Merrill Lynch was the left bookrunner. Jefferies LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the joint bookrunners.
The Franklin, Tenn.-based provider of inpatient behavioral health care services plans to use the proceeds to fund a portion of the purchase price for the planned acquisition of CRC Health Group, Inc. The additional $75 million of proceeds resulting from the upsizing of the deal will be used to finance the purchase in lieu of anticipated borrowings under the company’s revolver, according to a market source.
Issuer: | Acadia Healthcare Co., Inc.
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Amount: | $375 million, increased from $300 million
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Maturity: | Feb. 15, 2023
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Securities: | Senior notes
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Left bookrunner: | BofA Merrill Lynch
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Joint bookrunners: | Jefferies LLC, Citigroup Global Markets, Deutsche Bank Securities Inc.
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Co-managers: | Fifth Third Securities, RBC Capital Markets, Credit Agricole CIB, MUFG
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Coupon: | 5 5/8%
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Price: | Par
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Yield: | 5 5/8%
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Spread: | 393 bps
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Call protection: | Three years
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Trade date: | Feb. 5
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Settlement date: | Feb. 11
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Ratings: | Moody’s: B3
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| Standard & Poor’s: B-
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Distribution: | Rule 144A and Regulation S with registration rights
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Price talk: | 5¾% area
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Marketing: | Roadshow
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