By Paul A. Harris
Portland, Ore., Aug. 16 – U.S. Acute Care Solutions, LLC priced a $125 million add-on to its 6 3/8% senior secured notes due March 1, 2026 (B2/B-) at 103 with a 5.43% yield to maturity in a Monday drive-by, according to a market source.
The deal came on the rich end of the 102.5 to 103 price talk.
Barclays was the left bookrunner. Joint bookrunners were Deutsche Bank Securities Inc., Capital One Securities Inc. and Apollo Global Securities LLC.
The Canton, Ohio-based physician-owned emergency medicine, hospital and observation services provider plans to use the proceeds plus balance sheet cash to redeem a portion its preferred equity units at par (20% of the original amount) and to finance a common dividend.
| Issuer: | U.S. Acute Care Solutions, LLC
|
| Amount: | $125 million
|
| Maturity: | March 1, 2026
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| Security description: | Add-on to 6 3/8% senior secured notes due March 1, 2026
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | Deutsche Bank Securities Inc., Capital One Securities Inc. and Apollo Global Securities LLC
|
| Coupon: | 6 3/8%
|
| Price: | 103
|
| Yield to maturity: 5.43%
|
| Spread: | 473 bps
|
| First call: | March 1, 2023 at 103.188
|
| Trade date: | Aug. 16
|
| Settlement date: | Aug. 19 with accrued interest
|
| Ratings: | Moody's: B2
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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: | 102.5 to 103
|
| Marketing: | Drive-by
|
| Original issue: | $375 million priced in February 2021
|
| Fungibility: | Add-on notes will become fungible with original notes
|
| Total issue size: | $500 million
|
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