M*Modal talks $250 million eight-year notes to yield 10¼%-10½%

By Paul A. Harris

Portland, Ore., Aug. 13 - M*Modal Inc. talked its $250 million offering of eight-year senior notes (Caa1/B-) to yield 10¼% to 10½% on Monday, according to a syndicate source.

The books close at 1 p.m. ET on Tuesday, and the deal is set to price thereafter.

Bank of America Merrill Lynch and RBC Capital Markets LLC are the joint bookrunners.

SunTrust Robinson Humphrey Inc. is the lead manager. ING and SMBC are the co-managers.

The Rule 144A for life notes become callable in three years at par plus 75% of the coupon. They feature a 101% poison put.

Proceeds, along with proceeds from a $515 million senior secured credit facility, cash on hand and cash and equity investments by One Equity Partners will be used to finance the proposed acquisition of M*Modal and to repay existing debt.

The issuing entity will be Legend Acquisition Sub, Inc., which will be merged with and into M*Modal, a Franklin, Tenn.-based provider of clinical documentation services and speech understanding services.

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