US Acute Care Solutions talks $375 million five-year secured notes at 6½% area; pricing Thursday

By Paul A. Harris

Portland, Ore., Feb. 25 – US Acute Care Solutions, LLC talked its $375 million offering of five-year senior secured notes (B2/B-) to yield in the 6½% area, according to market sources.

Official talk comes on top of initial guidance in the mid-6% area.

Dealers accelerated the timing. Books close at 1 p.m. ET on Thursday, and the deal is set to price thereafter. It had previously been scheduled to remain in the market until Friday.

Barclays is the lead bookrunner. Deutsche Bank Securities Inc. and Capital One Securities Inc. are the joint bookrunners.

The notes become callable after two years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period. The notes also feature a two-year 40% equity clawback and a 101% poison put.

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.

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