New Issue: Aurora Diagnostics sells downsized $200 million seven-year notes at par to yield 10¾%

By Paul A. Harris

St. Louis, Dec. 14 - Aurora Diagnostics Holdings, LLC and Aurora Diagnostics Financing, Inc. priced a downsized $200 million issue of seven-year senior notes (/CCC+/) at par to yield 10¾% on Tuesday, according to an informed source.

The reoffer price and yield came in line with revised price talk. Originally the bonds were talked with a 10½% area yield.

Morgan Stanley & Co. Inc., Barclays Capital Inc. and UBS Investment Bank were the joint bookrunners for the issue, which was downsized from $230 million.

Proceeds will be used to repay bank debt, to help fund a pending acquisition and for general corporate purposes, including working capital.

The issuer is a Palm Beach Gardens, Fla.-based diagnostics company.

Issuers:	Aurora Diagnostics Holdings, LLC and Aurora Diagnostics Financing, Inc.
Amount:	$200 million, decreased from $230 million
Maturity:	Jan. 15, 2018
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. Inc., Barclays Capital Inc., UBS Investment Bank
Co-managers:	RBC Capital Markets Corp., BMO Nesbitt Burns
Coupon:	10¾%
Price:	Par
Yield:	10¾%
Call features:	Make-whole call at Treasuries plus 50 bps until Jan. 15, 2015, then callable at a premium (Call protection increased to four years from three years)
Equity clawback:	35% at 110.75 until Jan. 15, 2014
Trade date:	Dec. 14
Settlement date:	Dec. 20
Rating:	Standard & Poor's: CCC+
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	10¾% at par, increased from 10½% area
Marketing:	Roadshow

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