Res-Care to start roadshow Friday for $150 million eight-year senior notes

By Paul A. Harris

St. Louis, Sept. 15 - Res-Care Inc. will begin a roadshow Friday for its $150 million offering of eight-year senior notes, according to a market source.

Pricing is expected on Sept. 23.

JP Morgan and Goldman Sachs & Co. are the bookrunners for the Rule 144A/Regulation S offering, which has registration rights. Jefferies & Co. is the co-manager.

The notes come with four years of call protection.

Proceeds, together with existing cash and short-term investments, will be used to repurchase $150 million of the company's 10 5/8% senior notes due 2008 and to repay its existing term loan.

Credit ratings remain to be determined, according to the market source, who added that ratings in the mid-single B range are anticipated.

Res-Care is a Louisville-based company that provides residential, therapeutic, job training and educational supports to people with developmental or other disabilities, to youth with special needs and to adults who are experiencing barriers to employment.

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