By Paul A. Harris
St. Louis, Oct. 30 - Encore Medical Finance LLC priced a downsized $200 million issue of eight-year senior subordinated notes (Caa1/CCC+) at par to yield 11¾% on Monday, according to a market source.
The yield came 12.5 basis points beyond the wide end of the 11½% area price talk.
The offering was downsized by $15 million with that amount being shifted into the bank loan market.
Banc of America Securities LLC and Credit Suisse were joint bookrunners for the notes, which were issued via Rule 144A with registration rights.
Proceeds will be used to help fund the acquisition of Encore Medical, an Austin, Texas-based orthopedic implant manufacturer, by The Blackstone Group.
| Issuer: | Encore Medical Finance LLC
|
| Amount: | $200 million (decreased from $215 million)
|
| Maturity: | Nov. 15, 2014
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Banc of America Securities LLC, Credit Suisse
|
| Coupon: | 11¾%
|
| Price: | Par
|
| Yield: | 11¾%
|
| Spread: | 710
|
| Call features: | Callable on Nov. 15, 2010 at 105.875, 102.938, par on and after Nov. 15, 2012
|
| Equity clawback: | Until Nov. 15, 2009 for 35% a t 111.75
|
| Trade date: | Oct. 30
|
| Settlement date: | Nov. 3
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 11½% area
|
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