By Paul A. Harris
Portland, Ore., April 28 – 21st Century Oncology, Inc. priced a downsized $360 million issue of eight-year senior notes (Caa2) at par to yield 11% on Tuesday, according to a syndicate source.
The deal was downsized from $400 million, with $40 million of proceeds shifted to the concurrent seven-year first-lien term loan B, upsizing it to $610 million from $570 million.
The coupon and reoffer price came on top of price talk, which was increased from earlier talk in the 10½% area.
The deal also underwent covenant changes.
Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., KeyBanc Capital Markets and HSBC Bank were the joint bookrunners.
The Fort Meyers, Fla.-based provider of cancer treatment services plans to use the proceeds, together with cash on hand and new credit facilities, to repay its existing term loan, to redeem or repurchase its existing notes and for general corporate purposes.
| Issuer: | 21st Century Oncology, Inc.
|
| Amount: | $360 million, decreased from $400 million
|
| Maturity: | May 1, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., HSBC Securities (USA) Inc.
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| First call: | May 1, 2018 at 108.25
|
| Equity clawback: | 35% at 111 until May 1, 2018
|
| Trade date: | April 28
|
| Settlement date: | April 30
|
| Rating: | Moody's: Caa2
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 11% coupon at par, revised from 10½% area
|
| Marketing: | Roadshow
|
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