US Acute Care driving by with $225 million tap of 6 3/8% notes; initial price talk 100-101

By Paul A. Harris

Portland, Ore., Jan. 19 – US Acute Care Solutions, LLC plans to price a $225 million add-on to its 6 3/8% senior secured notes due March 1, 2026 in a Wednesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the Rule 144A and Regulation S for life deal coming at a dollar price of 100 to 101, a trader said.

Barclays is the left bookrunner. Apollo Global Securities LLC and Deutsche Bank Securities Inc. are the joint bookrunners.

The notes become callable on March 1, 2023 at 103.188.

The Canton, Ohio-based physician-owned emergency medicine, hospital and observation services provider plans to use the proceeds plus balance sheet cash and incremental preferred equity to fund the acquisition of Alteon Health.

The original $375 million issue priced in February 2021. A previous $125 million tap priced in August 2021.

The new add-on notes will be initially issued as temporary notes with substantially the same terms and conditions as the existing 6 3/8% secured notes due 2026. The temporary notes will be subject to a special mandatory redemption if the Alteon acquisition does not close. As soon as reasonably practicable after the closing of the acquisition, the temporary notes will be exchanged into fungible add-ons to the existing 6 3/8% secured notes due 2026.

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