By Paul A. Harris
Portland, Ore., March 18 - MultiPlan, Inc. priced a $1 billion issue of eight-year senior notes (Caa1/CCC+/) at par to yield 6 5/8% on Tuesday, according to a market source.
The yield printed at the tight end of final yield talk in the 6¾% area. Earlier guidance was in the 7% area.
J.P. Morgan Securities LLC and Barclays were the joint bookrunners.
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.
MultiPlan is a New York-based provider of health care cost management solutions.
| Issuer: | MPH Merger Sub LLC (MultiPlan, Inc.)
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 419 bps
|
| Price talk: | 6¾% area
|
| First call: | April 1, 2017 at 104.969
|
| Equity clawback: | 40% at 106.625 until April 1, 2017
|
| Trade date: | March 18
|
| Settlement date: | March 31
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
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