By Paul A. Harris
Portland, Ore., Dec. 4 – Radiology Partners, Inc. priced an upsized $800 million issue of five-year senior secured notes (B3/B-) at par to yield 5¼% on Friday, according to market sources.
The issue size increased from $650 million.
The yield printed at the tight end of yield talk in the 5 3/8% area.
The order book was five-times to six-times oversubscribed, according to a bond trader, who spotted the new Radiology Partners 5¼% secured notes due 2025 wrapped around 102 heading into Friday's close.
Barclays was at the left of a syndicate of bookrunners that also included Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Fifth Third Securities Inc. and BofA Securities Inc.
The issuing entity is RP Escrow Issuer, LLC, which is to be merged with an into Radiology Partners, Inc., a wholly owned subsidiary of Radiology Partners Holdings, LLC.
The El Segundo, Calif.-based radiology services provider plans to use the proceeds to fund its acquisition of the Mednax Radiology Solutions business from Florida-based physicians’ group Mednax.
| Issuer: | RP Escrow Issuer, LLC to be merged with and into Radiology Partners, Inc.
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| Amount: | $800 million, increased from $650 million
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| Maturity: | Dec. 15, 2025
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| Securities: | Senior secured notes
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| Bookrunners: | Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Fifth Third Securities Inc. and BofA Securities Inc.
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| Co-manager: | Roberts & Ryan Investments, Inc.
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| Coupon: | 5¼%
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| Price: | Par
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| Yield: | 5¼%
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| Spread: | 483 bps
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| First call: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2022, then callable at 102.625
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| Special call: | Issuer may redeem 10% of notes annually at 103 during the non-call period
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| Equity clawback: | 40% at 105.25 until Dec. 15, 2022
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| Trade date: | Dec. 4
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| Settlement date: | Dec. 15
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| Ratings: | Moody's: B3
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5 3/8% area
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| Marketing: | Roadshow
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