Acadia’s $390 million notes offering sees guidance ratchet to 6 5/8%

By Paul A. Harris

Portland, Ore., Feb. 4 – Official price talk on Acadia Healthcare Co. Inc.'s $390 million offering of eight-year senior notes (B3/B) had yet to be heard heading into the New York mid-morning on Thursday, according to a trader.

However guidance on the deal has ratcheted tighter, to 6 5/8%, the trader said, adding that the deal is believed to be playing to $3 billion to $4 billion of demand.

Initial guidance had the deal coming in the low 7% yield context, but that tightened to the high 6% context earlier in the week, sources said.

Official talk is expected shortly, and the Rule 144A and Regulation S offering is expected to price Thursday.

BofA Merrill Lynch and Jefferies LLC are leading the deal.

The Franklin, Tenn.-based provider of inpatient behavioral health care services plans to use the proceeds to help fund the acquisition of Priory, a provider of behavioral health care services in the United Kingdom.

The financing also includes a $955 million term loan.

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