By Paul A. Harris
Portland, Ore., April 22 – RegionalCare Hospital Partners Holdings, Inc. priced an $800 million issue of seven-year senior secured notes (B1/B) at par to yield 8¼% on Friday, according to a market source.
The yield printed in the middle of the 8 1/8% to 8 3/8% yield talk.
The deal also underwent covenant changes.
Barclays was the lead left bookrunner. RBC Capital Markets, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, UBS Investment Bank and Citigroup Global Markets were the joint bookrunners.
Proceeds will be used to help fund the creation of RegionalCare Capella Healthcare through the merger of RegionalCare Hospital Partners Inc. and Capella Healthcare Inc.
RegionalCare, owned by Apollo Global Management LLC, is a Brentwood, Tenn.-based owner and operator of regional acute care facilities.
Capella, owned by Medical Properties Trust Inc., is a Franklin, Tenn.-based operator of acute care and specialty hospital facilities.
| Issuer: | RegionalCare Hospital Partners Holdings, Inc.
|
| Amount: | $800 million
|
| Maturity: | May 1, 2023
|
| Securities: | Senior secured notes
|
| Lead left bookrunner: | Barclays
|
| Joint bookrunners: | RBC Capital Markets, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, UBS Investment Bank, Citigroup Global Markets Inc.
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 659 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until May 1, 2019, then callable at 106.188
|
| Equity clawback: | 40% at 108.25 until May 1, 2019
|
| Change-of-control put: | 101%
|
| Trade date: | April 22
|
| Settlement date: | April 29
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8 1/8% to 8 3/8%
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
