By Paul A. Harris
Portland, Ore., July 22 - MultiPlan, Inc. priced a $750 million issue of five-year senior PIK toggle notes (Caa1/CCC+) at par to yield 8 3/8% on Monday, according to a syndicate source.
The yield printed at the tight end of yield talk set in the 8½% area.
The notes pay a cash coupon of 8 3/8%. The coupon steps up to 9 1/8% for PIK payments.
The issuer will be required to pay interest in cash to the extent that the operating company's restricted payments are available.
The issuing entity was MPH Intermediate Holding Co. 2.
Barclays is the lead left bookrunner. BofA Merrill Lynch and Goldman Sachs & Co. were the joint bookrunners.
The notes become callable in one year at 102.
During the non-call period the issuer will have the option to repurchase the notes at 102 with proceeds from an equity offering.
Proceeds, together with a concurrent $100 million add-on term loan, will be used to fund a distribution to shareholders of the ultimate parent company.
MultiPlan is a New York-based provider of healthcare cost management solutions.
| Issuer: | MPH Intermediate Holding Co. 2 (MultiPlan, Inc.)
|
| Amount: | $750 million
|
| Maturity: | Aug. 1, 2018
|
| Securities: | Senior PIK toggle notes
|
| Bookrunners: | Barclays, BofA Merrill Lynch, Goldman, Sachs & Co.
|
| Co-managers: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC
|
| Cash coupon: | 8 3/8%
|
| PIK coupon: | 9 1/8%
|
| Price: | Par
|
| Yield: | 8 3/8%
|
| Spread: | 707 bps
|
| Call features: | Callable on Aug. 1, 2014 at 102, 101, par on and after Aug. 1, 2016
|
| IPO call: | During the non-call period the issuer has the option to repurchase the notes at 102 with the proceeds from equity offerings
|
| Trade date: | July 22
|
| Settlement date: | July 26
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8½% area
|
| Marketing: | Quick to market
|
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