New Issue: Merge Healthcare prices $200 million 11¾% five-year notes at 97.266 to yield 12½%

By Paul A. Harris

St. Louis, April 19 - Merge Healthcare Inc. priced a $200 million issue of 11¾% five-year first-lien senior secured notes (B2/B+/) at 97.266 to yield 12½% on Monday, according to an informed source.

The yield printed on top of the yield talk. The reoffer price came in line with discount talk of approximately 3 points.

Morgan Stanley & Co. Inc. ran the books.

Proceeds will be used to pay a portion of the Amicas acquisition.

Merge is a Milwaukee-based medical software developer.

Issuer:	Merge Healthcare Inc.
Face amount:	$200 million
Proceeds:	$194,532,000
Maturity:	May 1, 2015
Securities:	First-lien senior secured notes
Bookrunner:	Morgan Stanley & Co. Inc.
Coupon:	11¾%
Price:	97.266
Yield:	12½%
Spread:	999 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 1, 2013, then callable at 105.875, par on and after May 1, 2014
Trade date:	April 19
Settlement date:	April 28
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	12½% area all-in yield with approximately 3 points OID
Marketing:	Full roadshow

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