ResCare talks $200 million eight-year notes with 10½%-10¾% yield

By Paul A. Harris

St. Louis, Dec. 15 - ResCare, Inc. talked its $200 million offering of eight-year senior notes (B3/B-) with a 10½% to 10¾% yield, market sources said on Wednesday.

The deal was slated as late Wednesday or early Thursday business. No terms were available Wednesday night as Prospect News went to press.

The offering is being led by joint bookrunners J.P. Morgan Securities LLC and Bank of America Merrill Lynch.

The notes are formatted according to the provisions of Rule 144A and Regulation S and come with four years of call protection.

Proceeds will be used to repurchase and retire $150 million of the company's 7¾% senior notes due 2013, as well as to fund the second-step share exchange through which an affiliate of Onex Partners III, LP will complete the acquisition of all of the equity shares of ResCare, and for general corporate purposes.

The prospective issuer is a Louisville, Ky.-based provider of home care to the elderly and persons with disabilities.

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