Published on 7/29/2014 in the Prospect News High Yield Daily.
New Issue: Universal Health prices $600 million secured notes in two tranches
By Paul A. Harris
Portland, Ore., July 29 – Universal Health Services, Inc. priced $600 million of senior secured notes (expected ratings Ba1/BB+) in two tranches on Tuesday, according to a market source.
The quick-to-market deal came in two $300 million tranches.
A tranche of non-callable five-year notes priced at par to yield 3¾%, at the tight end of yield talk in the 3 7/8% area.
A tranche of eight-year notes priced at par to yield 4¾%, at the wide end of yield talk in the 4 5/8% area.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co. and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
The King of Prussia, Pa.-based hospital company plans to use the proceeds to refinance debt.
Issuer: | Universal Health Services, Inc.
|
Amount: | $600 million
|
Securities: | Senior secured notes
|
Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc.
|
Senior co-managers: | Credit Agricole CIB, Deutsche Bank Securities Inc., Mizuho, RBC Capital Markets, Wells Fargo Securities LLC, MUFG
|
Co-managers: | Fifth Third Bank, PNC Capital Markets, Santander, SMBC Nikko, TD Securities
|
Trade date: | July 29
|
Settlement date: | Aug. 7
|
Expected ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
Distribution: | Rule 144A and Regulation S with registration rights
|
Marketing: | Quick to market
|
|
Five-year notes
|
Amount: | $300 million
|
Maturity: | Aug. 1, 2019
|
Coupon: | 3¾%
|
Price: | Par
|
Yield: | 3¾%
|
Spread: | 206 bps
|
Call protection: | Non-callable
|
Price talk: | 3 7/8% area
|
|
Eight-year notes
|
Amount: | $300 million
|
Maturity: | Aug. 1, 2022
|
Coupon: | 4¾%
|
Price: | Par
|
Yield: | 4¾%
|
Spread: | 247 bps
|
First call: | Aug. 1, 2017 at 103.563
|
Price talk: | 4 5/8% 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.