MultiPlan sets guidance for $1 billion eight-year notes at 6¾% area; pricing Tuesday

By Paul A. Harris

Portland, Ore., March 18 - MultiPlan, Inc. set final talk in the 6¾% area for its $1 billion offering of eight-year senior notes (Caa1/CCC+/), a market source said on Tuesday.

That final talk represents a 25 basis points tightening of the 7% area guidance that was heard on Monday, the source added.

The Rule 144A and Regulation S for life notes are expected to price on Tuesday.

J.P. Morgan Securities LLC and Barclays are the joint bookrunners.

The notes become callable after three years at par plus 75% of the coupon.

Proceeds will be used to help fund the buyout of MultiPlan by Starr Investment Holdings and Partners Group from Silver Lake and BC Partners and to refinance existing debt.

Debt financing for the buyout also includes a $2.28 billion credit facility.

MultiPlan is a New York-based provider of health care cost management solutions.

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