By Paul A. Harris
Portland, Ore., Oct. 4 – Making its second pass at the high-yield new issue market in less than a week, HealthEquity, Inc. priced a $100 million add-on to its 4½% senior notes due Oct. 1, 2029 (B3/B) at 100.75 to yield 4.388% in a Monday drive-by, according to market sources.
Initial price talk was in the 100.5 area.
J.P. Morgan Securities LLC ran the books.
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 term loan and/or for general corporate purposes.
| Issuer: | HealthEquity, Inc.
|
| Amount: | $100 million
|
| Maturity: | Oct. 1, 2029
|
| Security description: | Add-on to 4½% senior notes due Oct. 1, 2029
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Co-manager: | Raymond James & Associates
|
| Coupon: | 4½%
|
| Price: | 100.75
|
| Yield: | 4.388%
|
| Spread: | 305 bps
|
| First call date: | Oct. 1, 2024
|
| Trade date: | Oct. 4
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Drive-by
|
| Talk: | Initial talk 100.5 area
|
| Original issue: | $500 million priced on Sept. 28
|
| Total issue size: | $600 million
|
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