Encore Medical talks downsized $200 million eight-year notes at 11½% area

By Paul A. Harris

St. Louis, Oct. 27 - Encore Medical Finance LLC downsized to $200 million from $215 million its offering of eight-year senior subordinated notes (Caa1/CCC+), according to market sources, one of whom added that there have also been covenant changes in the bonds.

The $15 million by which the notes offering was downsized has been shifted into the bank loan market.

The notes were talked at a yield in the 11½% area and are expected to price early in the Oct. 30 week.

Banc of America Securities LLC and Credit Suisse are joint bookrunners for the notes, which are being marketed via Rule 144A with registration rights.

The securities come with four years of call protection.

Proceeds will be used to help fund the acquisition of Encore Medical by The Blackstone Group.

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