Medline to price $1 billion five-year secured notes on Wednesday; initial talk mid-6% area

By Paul A. Harris

Portland, Ore., March 19 – Medline Industries, LP scheduled an investor conference call at 1:30 p.m. ET on Tuesday to kick off a $1 billion offering of Medline Borrower, LP senior secured notes due 2029 (B1/B+/BB-), according to market sources.

The deal comes with initial guidance in the mid-6% area and is set to price on Wednesday.

The Rule 144A and Regulation S for life five-year notes become subject to an initial call after two years at par plus 50% of the coupon. There is a special call provision allowing the issuer to call 10% of the notes annually at 103 during the non-call period. There is also a special call covering all of the notes outstanding at par plus the full coupon with the proceeds of a qualified IPO during the first two years.

The notes also feature a 40% equity clawback at par plus the full coupon during the non-call periods.

Goldman Sachs & Co. LLC is the left bookrunner. BofA Securities Inc., J.P. Morgan Securities LLC, Barclays, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., IMI Intesa Sanpaolo, Macquarie Capital (USA) Inc., Santander US Capital Markets LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., Deutsch Bank Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Jefferies LLC, UBS Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the joint bookrunners.

Blackstone and TCG Capital Markets are the co-managers.

The Northfield, Ill.-based health care company plans to use the proceeds to refinance a portion of its term loan.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.