New Issue: Select Medical upsizes to $600 million, prices eight-year notes at par to yield 6 3/8%

By Paul A. Harris

Portland, Ore., May 13 - Select Medical Corp. priced an upsized $600 million issue of eight-year senior notes (B3/B-) at par to yield 6 3/8% on Monday, according to a market source.

The deal was upsized from $500 million.

The yield printed at the tight end of yield talk set in the 6½% area.

J.P. Morgan Securities LLC, Goldman Sachs & Co., BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC

Proceeds will be used to repay a portion of the company's term loan B due in 2018.

Select Medical is a Mechanicsburg, Pa.-based operator of specialty hospitals and outpatient rehabilitation clinics.

Issuer:	Select Medical Corp.
Amount:	$600 million, increased from $500 million
Maturity:	June 1, 2021
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Goldman Sachs & Co., BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC
Coupon:	6 3/8%
Price:	Par
Yield:	6 3/8%
Spread:	488 bps
First call:	June 1, 2016 at 104.781
Equity clawback:	35% at 106.375 until June 1, 2016
Investor put:	101% upon change of control
Trade date:	May 13
Settlement date:	May 28
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	6½% area
Marketing:	Quick to market

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