By Paul A. Harris
St. Louis, Sept. 23 - Res-Care Inc. priced $150 million of 7¾% eight-year notes (B1/B) at 99.261 on Friday to yield 7 7/8%, according to a syndicate source.
The yield came at the wide end of the 7¾% area price talk.
JP Morgan and Goldman Sachs & Co. ran the books for the Rule 144A /Regulation S with registration rights issue. Jefferies & Co. was the co-manager.
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.
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.
| Issuer: | Res-Care Inc.
|
| Amount: | $150 million
|
| Maturity: | Oct. 15, 2013
|
| Security description: | Senior notes
|
| Bookrunners: | JP Morgan, Goldman Sachs & Co.
|
| Co-manager: | Jefferies & Co.
|
| Coupon: | 7¾%
|
| Price: | 99.261
|
| Yield: | 7 7/8%
|
| Spread: | 261 basis points
|
| Call features: | Callable after Oct. 15, 2009 at 103.875, 101.938, par on and after Oct. 15, 2011
|
| Equity clawback: | Until Oct. 15, 2008 for 35% at 107.75
|
| Trade date: | Sept. 23
|
| Settlement date: | Oct. 3
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Price talk: | 7¾% area
|
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