By Paul A. Harris
St. Louis, May 21 - Apria Healthcare Group Inc. priced an upsized $700 million issue of 11¼% senior secured notes, series A-1, due Nov. 1, 2014 (Ba2/BB+) at 97.05 to yield 12% on Thursday, according to an informed source.
The yield came 25 basis points wide of the original price talk of 11½% to 11¾%. However talk on the deal widened to 12% with the upsizing of the deal from $600 million, market sources said.
The issue price came toward the cheap end of the 2 to 3 points of discount talk.
Banc of America Securities LLC, Wachovia Securities LLC and Barclays Capital Inc. were joint bookrunners for the Rule 144A with registration rights notes. Scotia Capital is a co-manager.
In upsizing the series A-1 offering Apria shifted $100 million from the senior secured notes, series A-2, due 2014 (B1), downsizing that tranche to $310 million from $410 million.
Proceeds will be used to refinance the bridge loan used to fund a leveraged buyout of the company by the Blackstone Group. The loan was funded on Oct. 28, 2008.
Apria is a Lake Forest, Calif., home health care services company.
| Issuer: | Apria Healthcare Group Inc.
|
| Face amount: | $700 million, upsized from $600 million
|
| Proceeds: | $679.35 million
|
| Maturity: | Nov. 1, 2014
|
| Security description: | Senior secured notes, series A-1
|
| Bookrunners: | Banc of America Securities LLC, Wachovia Securities LLC, Barclays Capital Inc.
|
| Co-manager: | Scotia Capital
|
| Coupon: | 11¼%
|
| Price: | 97.05
|
| Yield: | 12%
|
| Spread: | 993 bps
|
| Call protection: | 2.5 years
|
| Equity clawback: | 35% at 111.25 until Nov. 1, 2011
|
| Trade date: | May 21
|
| Settlement date: | May 27
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 12%, increased from 11½% to 11¾% with 2 to 3 points of OID
|
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