By Paul A. Harris
Portland, Ore., Jan. 27 - Priory Group Ltd. completed a £600 million equivalent two-part high-yield note offering on Thursday, according to market sources.
The deal included £425 million of seven-year senior secured notes (Ba3/BB/BB+), which priced at par to yield 7%, at the tight end of the 7% to 7¼% price talk.
Priory also priced £175 million of eight-year senior unsecured notes (B3/B/BB) at par to yield 8 7/8%, at the tight end of the 9% area price talk.
Deutsche Bank, the Royal Bank of Scotland and Credit Suisse were the joint bookrunners.
Proceeds will be used to finance the acquisition of Priory by Advent International.
Priory is a provider of mental health care facilities and is based in Leatherhead, England.
| Issuer: | Priory Group Ltd.
|
| Amount: | £600 million
|
| Bookrunners: | Deutsche Bank, the Royal Bank of Scotland, Credit Suisse
|
| Co-managers: | RBC Capital Markets, GE Capital
|
| Trade date: | Jan. 27
|
| Settlement date: | Feb. 3
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Senior secured notes
|
| Amount: | £425 million
|
| Maturity: | Feb. 15, 2018
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 387 bps
|
| Call features: | Make-whole call at Gilts plus 50 bps until Feb. 15, 2014, then callable at a premium
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Fitch: BB+
|
| Price talk: | 7% to 7¼%
|
|
|
| Senior unsecured notes
|
| Amount: | £175 million
|
| Maturity: | Feb. 15, 2019
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 534 bps
|
| Call features: | Make-whole call at Gilts plus 50 bps until Feb. 15, 2014, then callable at a premium
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Fitch: BB
|
| Price talk: | 9% area
|
© 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.
