By Paul A. Harris
Portland, Ore., Feb. 4 – Acadia Healthcare Co. Inc. priced a $390 million issue of eight-year senior notes (B3/B) at par to yield 6½% on Thursday, according to an informed source.
The yield printed at the tight end of the 6½% to 6¾% yield talk. That talk had tightened through the week, as the deal was being marketed, sources said.
Initial guidance had the bonds pricing in the low 7% yield context, which gave way later in the week to talk in the high 6% context.
Shortly before official talk surfaced on Thursday, discussions had ratcheted down to 6 5/8%, according to a trader, who added that the $390 million deal was believed to be playing to between $3 billion and $4 billion of orders.
BofA Merrill Lynch was the left bookrunner. Jefferies LLC was the joint bookrunner.
The Franklin, Tenn.-based provider of inpatient behavioral health care services plans to use the proceeds to help fund the acquisition of Priory, a provider of behavioral health care services in the United Kingdom.
The financing also includes a $955 million term loan.
| Issuer: | Acadia Healthcare Co., Inc.
|
| Amount: | $390 million
|
| Maturity: | March 1, 2024
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunner: | Jefferies LLC
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 479 bps
|
| First call date: | March 1, 2019
|
| Trade date: | Feb. 4
|
| Settlement date: | Feb. 16
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Roadshow
|
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