By Paul A. Harris
Portland, Ore., Jan. 19 – US Acute Care Solutions, LLC priced a $225 million add-on to its 6 3/8% senior secured notes due March 1, 2026 (B2/B-) at 101.5 to yield 5.831% in a Wednesday drive-by, according to market sources.
The issue price came at the rich end of the 101 to 101.5 price talk. Initial guidance was 100 to 101.
The deal was heard to be two-times oversubscribed at 1 p.m. ET on Wednesday, a trader said.
Barclays was the left bookrunner. Apollo Global Securities LLC and Deutsche Bank Securities Inc. were also bookrunners.
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 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.
| Issuer: | US Acute Care Solutions, LLC
|
| Amount: | $225 million
|
| Issue: | Add-on to senior secured notes
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| Maturity: | March 1, 2026
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| Bookrunners: | Barclays (bill and deliver), Apollo Global Securities LLC and Deutsche Bank Securities Inc.
|
| Coupon: | 6 3/8%
|
| Price: | 101.5
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| Yield to maturity: | 5.831%
|
| Spread: | 430 bps
|
| First call: | March 1, 2023 at 103.188
|
| Trade date: | Jan. 19
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| Settlement date: | Feb. 1
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| 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: | 101 to 101.5
|
| Marketing: | Drive-by
|
| Original issue: | $375 million priced in February 2021
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| Previous add-on: | $125 million priced in August 2021
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