New Issue: LifeCare sells $150 million eight-year notes at par to yield 9¼%

By Paul A. Harris

St. Louis, Aug. 5 - LifeCare Holdings Inc. priced a $150 million issue of eight-year senior subordinated notes (Caa1/CCC+) at par on Friday to yield 9¼%, according to an informed source.

The yield came at the wide end of the 9% to 9¼% price talk.

Banc of America Securities LLC and JP Morgan ran the books for the Rule 144A issue. ING was the co-manager.

Proceeds will be used to fund the acquisition of the company by The Carlyle Group.

LifeCare is a Plano, Texas-based operator of long-term acute care hospitals.

Issuer:	LifeCare Holdings Inc.
Amount:	$150 million
Maturity:	Aug. 15, 2013
Security description:	Senior subordinated notes
Bookrunners:	Banc of America Securities LLC, JP Morgan
Co-manager:	ING
Coupon:	9¼%
Price:	Par
Yield:	9¼%
Spread:	492 basis points
Call features:	Callable after Aug. 15, 2009 at 104.625, 102.313, par on and after Aug. 15, 2011
Equity clawback:	Until Aug. 15, 2008 for 35% at 109.25
Trade date:	Aug. 5
Settlement date:	Aug. 11
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
Price talk:	9%-9¼%

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