By Paul A. Harris
St. Louis, Jan. 25 - CRC Health Corp. priced a downsized $200 million issue of 10¾% 10-year senior subordinated notes (Caa1/CCC+) at 98.511 on Wednesday to yield 11%, according to a market source.
The yield came wide of the 10¾% area price talk. The sale generated about $197 million of proceeds.
JP Morgan, Merrill Lynch & Co., Citigroup and Credit Suisse ran the books for the issue, which was sold via Rule 144A with registration rights and via Regulation S.
Proceeds will be used to repay debt in connection with the acquisition of the company by Bain Capital from North Castle Partners.
The issue was downsized from $220 million, with the company shifting $20 million of planned proceeds to its term loan B.
CRC Health is a Cupertino, Calif., owner and operator of residential and outpatient addiction treatment facilities.
| Issuer: | CRC Health Corp.
|
| Face amount: | $200 million (decreased from $220 million)
|
| Proceeds: | $197 million (approximate)
|
| Maturity: | Feb. 1, 2016
|
| Security description: | Senior subordinated notes
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| Bookrunners: | JP Morgan, Merrill Lynch & Co., Citigroup, Credit Suisse
|
| Coupon: | 10¾%
|
| Price: | 98.511
|
| Yield: | 11%
|
| Spread: | 655 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points until Feb. 1, 2011, then callable at a premium
|
| Trade date: | Jan. 25
|
| Settlement date: | Feb. 6
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
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| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 10¾% area
|
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