By Paul A. Harris
St. Louis, April 6 - MultiPlan Inc. priced a downsized $225 million issue of 10-year senior subordinated notes (Caa1/B-) at par to yield 10 3/8% on Thursday, according to an informed source.
The yield came at the tight end of the 10 3/8% to 10 5/8% price talk.
Goldman Sachs & Co. and Banc of America Securities LLC were joint bookrunners for the notes, which were sold via Rule 144A and Regulation S. Morgan Stanley was the co-manager.
Proceeds will be used to help fund the acquisition of MultiPlan by affiliates of The Carlyle Group and a member of MultiPlan's senior management.
The issue was downsized from $250 million, with $25 million of proceeds shifted to the company's term loan.
MultiPlan is a New York-based independent preferred provider organization.
| Issuer: | MultiPlan Inc.
|
| Amount: | $225 million (decreased from $250 million)
|
| Maturity: | April 15, 2016
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Goldman Sachs & Co., Banc of America Securities LLC
|
| Co-manager: | Morgan Stanley
|
| Coupon: | 10 3/8%
|
| Price: | Par
|
| Yield: | 10 3/8%
|
| Spread: | 548 bps
|
| Call protection: | Callable on and after April 15, 2011 at 105.188, 103.458, 101.729, par on and after April 15, 2014
|
| Equity clawback: | Until April 15, 2009 for 35% at 110.375
|
| Trade date: | April 6
|
| Settlement date: | April 12
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 10 3/8%-10 5/8%
|
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