By Paul A. Harris
Portland, Ore., Nov. 16 – MultiPlan, Inc. priced $1.3 billion of five-year senior holdco PIK toggle notes (Caa1/B-) at 99 to yield 8.751% on Thursday, according to a syndicate source.
The notes pay an 8½% cash coupon, which toggles up to 9¼% for PIK payments.
The deal was talked in the 8½% area with 1 point of original issue discount.
The notes were issued through Polaris Intermediate Corp.
There were 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.
Goldman Sachs & Co. was the left lead. Barclays and BofA Merrill Lynch were 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.
| Issuer: | Polaris Intermediate Corp. (MultiPlan, Inc.)
|
| Amount: | $1.3 billion
|
| Maturity: | Dec. 1, 2022
|
| Securities: | Senior holdco PIK toggle notes
|
| Left lead: | Goldman Sachs & Co.
|
| Leads: | Barclays, BofA Merrill Lynch
|
| Cash coupon: | 8½%
|
| PIK coupon: | 9¼%
|
| Price: | 99
|
| Yield: | 8.751%
|
| Call: | Make-whole call at Treasuries plus 50 bps prior to June 1, 2019, then callable at 104
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8½% area at 99
|
| Marketing: | Roadshow
|
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