By Paul A. Harris
Portland, Ore., Feb. 9 – Hill-Rom Holdings, Inc. priced a $300 million issue of eight-year senior notes (B1/BB) at par to yield 5% on Thursday, according to a market source.
The yield printed at the tight end of yield talk in the 5 1/8% area and inside of initial guidance in the 5¼% area.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Citizens, Goldman Sachs & Co., MUFG and PNC Capital Markets were the joint bookrunners.
The Chicago-based medical technology company plans to use the proceeds, together with available cash balances, to finance its previously announced acquisition of Mortara Instrument, Inc.
The notes will be subject to a special mandatory redemption if the Mortara acquisition is not consummated.
| Issuer: | Hill-Rom Holdings, Inc.
|
| Amount: | $300 million
|
| Maturity: | Feb. 15, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Citizens, Goldman Sachs & Co., MUFG, PNC Capital Markets
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 269 bps
|
| Call protection: | Three years
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Distribution: | Rule 144A for life
|
| Price talk: | 5 1/8% area
|
| Marketing: | Quick to market
|
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