MultiPlan talks new $1.3 billion five-year holdco PIK toggle notes in 8½% area, OID of 99

By Paul A. Harris

Portland, Ore., Nov. 16 – MultiPlan, Inc. talked its $1.3 billion offering of five-year senior holdco PIK toggle notes (Caa1/B-) in the 8½% area, with 1 point of original issue discount, according to a syndicate source.

Price talk surfaced Thursday along with revisions to the call features and equity clawback.

Call protection was extended to 19 months from 12 months. The first call premium was increased to 104 from 102.

The equity clawback was revised to 40% at par plus the coupon during the non-call period. Previously the deal was coming with a 100% equity clawback at 102 during the non-call period.

Books close at 1:30 p.m. ET on Thursday, and the Rule 144A and Regulation S for life notes are set to price thereafter.

Goldman Sachs & Co. is the left lead. Barclays and BofA Merrill Lynch are also leads.

The New York-based provider of health care cost management solutions plans to use the proceeds to fund a dividend to its shareholders.

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