By Paul A. Harris
Portland, Ore., Sept. 28 – HealthEquity, Inc. priced a $500 million issue of eight-year senior notes (B3/B) at par to yield 4½% in a Tuesday drive-by, according to market sources.
The yield printed at the tight end of the 4½% to 4¾% yield talk and tighter than initial guidance in the high-4% area.
The deal was heard to be playing to $2.7 billion of orders, a trader said.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included Wells Fargo Securities LLC, Truist Securities Inc. and RBC Capital Markets LLC.
The Draper, Utah-based health care financial services provider plans to use the proceeds plus cash on hand and new credit facilities to refinance its existing term loan and/or for general corporate purposes.
| Issuer: | HealthEquity, Inc.
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2029
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Truist Securities Inc. and RBC Capital Markets LLC
|
| Coupon: | 4½%
|
| Price: | Par
|
| Yield: | 4½%
|
| Spread: | 312 bps
|
| Call protection: | Three years
|
| Trade date: | Sept. 28
|
| Settlement date: | Oct. 8
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 4½% to 4¾%
|
| Marketing: | Drive-by
|
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