New Issue: ResCare, prices $200 million eight-year notes at par to yield 10¾%

By Paul A. Harris

St. Louis, Dec. 16 - ResCare, Inc. priced a $200 million issue of eight-year senior notes (B3/B-/) at par to yield 10¾% on Thursday, according to an informed source.

The yield printed at the wide end of the 10½% to 10¾% price talk.

The deal was led by joint bookrunners J.P. Morgan Securities LLC and Bank of America Merrill Lynch.

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

Issuer:	ResCare, Inc.
Amount:	$200 million
Maturity:	Jan. 15, 2019
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Bank of America Merrill Lynch
Co-managers:	Fifth Third, US Bancorp
Coupon:	10¾%
Price:	Par
Yield:	10¾%
Spread:	762 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Jan. 15, 2015, then callable at 105.375, 102.688, par on and after Jan. 15, 2017
Equity clawback:	35% at 110.75 until Jan. 15, 2014
Change-of-control put:	101%
Trade date:	Dec. 16
Settlement date:	Dec. 22
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	10½% to 10¾%
Marketing:	Roadshow

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