Radiology Partners upsizes to $710 million, launches eight-year notes with 9¼% coupon at par

By Paul A. Harris

Portland, Ore., Jan. 24 – Radiology Partners, Inc. upsized its offering of eight-year senior notes (Caa2/CCC+) to $710 million from $610 million and launched the deal with a 9¼% coupon at par.

That execution will have the notes printing at the tight end of the 9¼% to 9½% yield talk.

The deal is expected to price late Friday morning.

Barclays is the left lead bookrunner. Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Fifth Third Securities Inc. and BofA Securities Inc. are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The El Segundo, Calif.-based hospital-based radiology services provider plans to use the proceeds to pay off its revolver and second-lien term loan and for general corporate purposes. Of the incremental proceeds resulting from the $100 million upsizing of the deal, $50 million will be used to repay the existing first-lien term loan, with the other $50 million to be used for general corporate purposes.

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