New Issue: Acadia Healthcare upsizes to $375 million, prices eight-year notes at par to yield 5 5/8%

By Paul A. Harris

Portland, Ore., Feb. 5 – Acadia Healthcare Co. Inc. priced an upsized $375 million issue of eight-year senior notes (B3/B-) at par to yield 5 5/8% on Thursday, according to a syndicate source.

The deal was increased from $300 million.

The yield printed at the tight end of yield talk that had been set in the 5¾% area.

BofA Merrill Lynch was the left bookrunner. Jefferies LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the joint bookrunners.

The Franklin, Tenn.-based provider of inpatient behavioral health care services plans to use the proceeds to fund a portion of the purchase price for the planned acquisition of CRC Health Group, Inc. The additional $75 million of proceeds resulting from the upsizing of the deal will be used to finance the purchase in lieu of anticipated borrowings under the company’s revolver, according to a market source.

Issuer:	Acadia Healthcare Co., Inc.
Amount:	$375 million, increased from $300 million
Maturity:	Feb. 15, 2023
Securities:	Senior notes
Left bookrunner:	BofA Merrill Lynch
Joint bookrunners:	Jefferies LLC, Citigroup Global Markets, Deutsche Bank Securities Inc.
Co-managers:	Fifth Third Securities, RBC Capital Markets, Credit Agricole CIB, MUFG
Coupon:	5 5/8%
Price:	Par
Yield:	5 5/8%
Spread:	393 bps
Call protection:	Three years
Trade date:	Feb. 5
Settlement date:	Feb. 11
Ratings:	Moody’s: B3
	Standard & Poor’s: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	5¾% area
Marketing:	Roadshow

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