New Issue: Kindred Healthcare prices $500 eight-year notes at par to yield 6 3/8%

By Paul A. Harris

Portland, Ore., March 26 - Kindred Healthcare, Inc. priced a $500 million issue of eight-year senior notes (B3/B-) at par to yield 6 3/8% on Wednesday, according to market sources.

The yield printed at the tight end of yield talk in the 6½% area.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.

The Louisville-based health care services company plans to use the proceeds, along with borrowings under certain senior secured credit facilities, to redeem and repurchase $550 million of its 8¼% senior notes due 2019.

Issuer:	Kindred Healthcare, Inc.
Amount:	$500 million
Maturity:	April 15, 2022
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
Coupon:	6 3/8%
Price:	Par
Yield:	6 3/8%
Spread:	389 bps
Price talk:	6½% area
First call:	April 15, 2017 at 104.781
Trade date:	March 26
Settlement date:	April 9
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S
Marketing:	Quick to market

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