New Issue: Alliance Imaging prices $150 million eight-year notes at par to yield 7¼%

By Paul A. Harris

St. Louis, Dec. 9 - Alliance Imaging Inc. sold $150 million of eight-year senior subordinated notes (B3/B-) at par on Thursday to yield 7¼%, according to a syndicate source.

Price talk was the 7¼% area.

Deutsche Bank Securities and Citigroup were the bookrunners for the Rule 144A/Regulation S issue. The co-managers were Lehman Brothers and Merrill Lynch.

Proceeds will be used to help redeem the company's outstanding $260 million of 10 3/8% senior subordinated notes due 2011.

The issuer is an Anaheim, Calif.-based diagnostic imaging systems operator for more than 1,300 hospitals and other health care providers in nearly 45 states.

Issuer:	Alliance Imaging Inc.
Amount:	$150 million
Maturity:	Dec. 15, 2012
Security description:	Senior subordinated notes
Bookrunners:	Deutsche Bank Securities, Citigroup
Co-managers:	Lehman Brothers, Merrill Lynch
Coupon:	7¼%
Price:	Par
Yield:	7¼%
Spread:	337 basis points
Call features:	Callable after Dec. 15, 2007 at 103.625, 101.813, par on Dec. 15, 2009 and thereafter
Equity clawback:	Until Dec. 15, 2007 for 40% at 107.25
Trade date:	Dec. 9
Settlement date:	Dec. 29
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	7¼% area

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