New Issue: Genesis HealthCare upsizes to $225 million, 10-year notes yield 8%

By Paul A. Harris

St. Louis, Oct. 23 - Genesis HealthCare Corp. priced an upsized offering of $225 million senior subordinated notes due Oct. 15, 2013 (B3/B-) at par Thursday to yield 8%, according to a syndicate source.

The deal was increased from $200 million. Price talk was for a yield of 8%-8¼%.

Lehman Brothers, Credit Suisse First Boston and UBS Investment Bank were bookrunners on the Rule 144A deal. The co-managers were Goldman Sachs & Co., Wachovia Securities, Jefferies & Co. and Legg Mason.

Genesis HealthCare will use proceeds to repay existing debt in connection with its spin off from Genesis Health Ventures, Inc.

The issuer is a Kennett Square, Pa.-based provider of healthcare services to the elderly.

Issuer:	Genesis Healthcare Corp.
Amount:	$225 million (increased from $200 million)
Maturity:	Oct. 15, 2013
Security description:	Senior subordinated notes
Bookrunners:	Lehman Brothers, Credit Suisse First Boston, UBS Investment Bank
Co-managers:	Goldman Sachs, Wachovia Securities, Jefferies, Legg Mason
Coupon:	8%
Price:	Par
Yield:	8%
Call features:	Callable on Oct. 15, 2008 at 104.0, then 102.667, 101.333, declining to par on Oct. 15, 2011 and thereafter
Equity clawback:	Until Oct. 15, 2006 for 35% at 108.0
Settlement date:	Oct. 28
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	8%-8¼%

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