By Paul A. Harris
St. Louis, Nov. 18 - Team Health Inc. priced a downsized $215 million issue of eight-year senior subordinated notes (Caa1/B-) at par on Thursday night to yield 11¼%, according to a market source.
The yield came at the wide end of the 11% to 11¼% price talk.
JP Morgan, Lehman Brothers and Merrill Lynch & Co. were joint bookrunners for the Rule 144A with registration rights offering.
Proceeds will be used to help fund the leveraged buyout of the company by the Blackstone Group.
The issue was downsized from $265 million. 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 issuer is a Knoxville, Tenn.-based provider of outsourced medical staffing, management, administrative and other support services.
| Issuer: | Team Health Inc.
|
| Amount: | $215 million (decreased from $265 million)
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| Maturity: | Dec. 1, 2013
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| Security description: | Senior subordinated notes
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| Bookrunners: | JP Morgan, Lehman Brothers, Merrill Lynch
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| Coupon: | 11¼%
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| Price: | Par
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| Yield: | 11¼%
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| Spread: | 678 basis points
|
| Call protection: | Four years
|
| Trade date: | Nov. 17
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| Settlement date: | Nov. 23
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| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 11% to 11¼%
|
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