Prospect Medical talks $160 million five-year notes at 14¼% area with about 4 points of OID

By Paul A. Harris

St. Louis, July 20 - Prospect Medical Holdings, Inc. set price talk for its $160 million offering of five-year senior secured first-lien notes (B3/B) at the 14¼% area, on Monday, according to an informed source.

The notes are expected to price with approximately 4 points of original issue discount.

Books close at 2 p.m. ET on Tuesday. Pricing is expected Tuesday or Wednesday.

RBC Capital Markets is left bookrunner for the Rule 144A and Regulation S with registration rights offering. Jefferies & Co. is joint bookrunner.

The notes come with three years of call protection and a change-of-control put at 101%.

The Los Angeles-based hospital and health management services company will use the proceeds to repay amounts outstanding under its credit facility.

Prospect Medical operates five hospitals in the greater Los Angeles area.

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