By Paul A. Harris
St. Louis, Oct. 20 - Hanger Orthopedic Group, Inc. priced a $200 million issue of eight-year senior notes (B3/B/) at par to yield 7 1/8% on Wednesday, according to an informed source.
The yield printed at the tight end of the 7¼% area price talk.
During a Tuesday call the company noted that it was "going into a pretty hot [high-yield] market" and expressed hopes that the deal could be executed with an interest rate in the 7% range.
Bank of America Merrill Lynch, Jefferies & Co., Oppenheimer & Co. and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
RBC Capital Markets Corp. was the co-manager.
The Austin, Texas-based provider of orthotic and prosthetic patient care services plans to use the proceeds to repurchase its existing 10¼% senior notes due 2014 and for general corporate purposes.
| Issuer: | Hanger Orthopedic Group, Inc.
|
| Amount: | $200 million
|
| Maturity: | Nov. 15, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Jefferies & Co, Oppenheimer & Co., SunTrust Robinson Humphrey Inc.
|
| Co-manager: | RBC Capital Markets Corp.
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 508 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2014, then callable at 103.563, 101.781, par on and after Nov. 15, 2016
|
| Equity clawback: | 35% at 107.125 until Nov. 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 20
|
| Settlement date: | Nov. 2
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 7¼% area
|
| Marketing: | Quick to market
|
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