By Paul A. Harris
Portland, Ore., Feb. 25 – U.S. Acute Care Solutions, LLC priced a $375 million issue of five-year senior secured notes (B2/B-) at par to yield 6 3/8% on Thursday, according to market sources.
The yield printed at the tight end of yield talk in the 6½% area. Initial guidance was in the mid-6% area.
Dealers accelerated the timing. Books closed at 1 p.m. ET on Thursday, and the deal priced thereafter. The offering had previously been scheduled to remain in the market until Friday.
Barclays was the lead bookrunner. Joint bookrunners were Deutsche Bank Securities Inc. and Capital One Securities Inc.
The Canton, Ohio-based physician-owned emergency medicine, hospital and observation services provider plans to use the proceeds to support a refinancing of its existing debt and, along with preferred investment from Apollo, to recapitalize the company to increase physician ownership.
| Issuer: | U.S. Acute Care Solutions, LLC
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| Amount: | $375 million
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| Maturity: | March 1, 2026
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| Securities: | Senior secured notes
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| Lead bookrunner: | Barclays
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| Joint bookrunners: | Deutsche Bank Securities Inc. and Capital One Securities Inc.
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| Coupon: | 6 3/8%
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| Price: | Par
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| Yield: | 6 3/8%
|
| Spread: | 563 bps
|
| First call: | March 1, 2023 at 103.188
|
| Trade date: | Feb. 25
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| Settlement date: | March 5
|
| Ratings: | Moody's: B2
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% area
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