New Issue: National Nephrology upsizes eight-year notes to $160 million, yield 9%

By Paul A. Harris

St. Louis, Oct. 16 - National Nephrology Associates, Inc. priced an upsized offering of $160 million of senior subordinated notes due Nov. 1, 2011 (B3/B-) at par Thursday to yield 9%, according to a syndicate source.

Price talk was for a yield of 9%-9¼%. The deal was increased from $150 million.

Banc of America Securities ran the books on the Rule 144A deal. JP Morgan and RBC were joint lead managers. Harris Nesbitt was co-manager.

Proceeds will be used to repay bank debt and fund payment of the first phase of its acquisition of the Saint Barnabas assets.

The issuer is a Nashville-based provider of dialysis services.

Issuer:	National Nephrology Associates, Inc.
Amount:	$160 million (increased from $150 million)
Maturity:	Nov. 1, 2011
Security description:	Senior subordinated notes
Bookrunner:	Banc of America Securities
Joint lead managers:	JP Morgan, RBC
Co-manager:	Harris Nesbitt
Coupon:	9%
Price:	Par
Yield:	9%
Spread:	487 basis points
Call features:	Callable on Nov. 1, 2007 at 104.50, then 102.25, declining to par on Nov. 1, 2009 and thereafter
Equity clawback:	Until Nov. 1, 2006 for 35% at 109.0
Settlement date:	Oct. 22
Ratings:	Moody's: B3
	Standard & Poor's: B-
Rule 144A Cusip:	63703AAA3
Price talk:	9%-9¼%

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