ResCare $150 million seven-year notes talked at 10 5/8%-10 7/8%

By Paul A. Harris

St. Louis, Mo., Nov. 8 - ResCare Inc.'s $150 million of senior notes due 2008 (B2/B) are talked at a yield of 10 5/8%-10 7/8%, according to a syndicate source who added that the deal is expected to price Friday.

UBS Warburg and Lehman Brothers are joint bookrunners. The co-leads include Banc One Capital Markets, US Bancorp Piper Jaffray, Jefferies & Co. and First Analysis Securities.

The Rule 144A notes are non-callable for four years with an equity claw of 35% in the first three years, the source said. Proceeds will be used to pay down bank debt and to pay down the company's 6% convertible notes.

The Louisville, Ky.-based company provides services for special needs individuals.

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