Team Health downsizes to $215 million, talks eight-year notes 11%-11¼%

By Paul A. Harris

St. Louis, Nov. 17 - Team Health Inc. talked its downsized $215 million offering of eight-year senior subordinated notes at 11% to 11¼% on Thursday, according to market sources.

The offering, which was downsized from $265 million, is expected to price Friday, according to one source.

JP Morgan, Lehman Brothers and Merrill Lynch & Co. are joint bookrunners for the Rule 144A with registration rights offering.

Proceeds will be used to fund the leveraged buyout of the company by the Blackstone Group.

Moody's Investors Service assigns its Caa1 rating to the notes. The Standard & Poor's rating is B-.

The $50 million by which the bond offering was downsized was shifted to the company's term loan, which was upsized to $425 million from $375 million.

The prospective issuer is a Knoxville, Tenn.-based provider of outsourced medical staffing, management, administrative and other support services.

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