By Paul A. Harris
St. Louis, Sept. 28 - Encore Medical IHC Inc. sold $165 million of eight-year senior subordinated notes (Caa1/CCC+) Tuesday at 99.314 with a 9¾% coupon to yield 9 7/8%, according to an informed source.
Price talk was 9 5/8% to 9 7/8%.
Banc of America Securities ran the books for the Rule 144A issue. First Albany Capital was the co-manager.
Proceeds will be used to help fund Encore's $360 million acquisition of EMPI Inc.
Encore Medical is an Austin, Texas-based diversified orthopedic device company.
| Issuer: | Encore Medical IHC Inc.
|
| Amount: | $165 million
|
| Maturity: | Oct. 1, 2012
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Banc of America Securities
|
| Co-manager: | First Albany Capital
|
| Coupon: | 9¾%
|
| Price: | 99.314
|
| Yield: | 9 7/8%
|
| Spread: | 612 basis points
|
| Call features: | Callable after Oct. 1, 2008 at 104.875, 102.438, par on or after Oct. 1, 2010
|
| Equity clawback: | Until Oct. 1, 2007 for 35% at 109.75
|
| Pricing date: | Sept. 28
|
| Settlement date: | Oct. 4
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Price talk: | 9 5/8% - 9 7/8%
|
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