By Abigail W. Adams
Portland, Me., March 26 – Surgery Center Holdings Inc. priced an upsized $800 million of eight-year senior notes (Caa1/CCC+) at par to yield 7¼% in a Tuesday drive-by, according to a market source.
Pricing came at the tight end of talk for a yield of 7¼% to 7½%. Early guidance was for a yield in the 7½% to 7¾% area.
The initial size of the offering was $600 million.
The notes are non-callable for three years.
Barclays (lead left), Jefferies LLC, BofA Securities Inc. and J.P. Morgan Securities LLC were active bookrunners for the Rule 144A and Regulation S offering.
Capital One Securities Inc., Fifth Third Securities Inc., First Citizens, KKR Capital Markets LLC, Mizuho Securities USA Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and SMBC Nikko Securities America Inc. were also bookrunners.
There is an equity clawback of up to 40% and a poison put of 101.
Proceeds will be used to redeem the company’s 6¾% senior notes due 2025 and 10% senior notes due 2027.
Surgery Center is a Nashville-based health care services company.
| Issuer: | Surgery Center Holdings Inc.
|
| Amount: | $800 million
|
| Issue: | Senior notes
|
| Maturity: | April 15, 2032
|
| Left bookrunner: | Barclays
|
| Active bookrunners: | Jefferies LLC, BofA Securities Inc. and J.P. Morgan Securities LLC
|
| Bookrunners: | Capital One Securities Inc., Fifth Third Securities Inc., First Citizens, KKR Capital Markets LLC, Mizuho Securities USA Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and SMBC Nikko Securities America Inc.
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| First call: | April 15, 2027
|
| Trade date: | March 26
|
| Settlement date: | April 10
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7¼% to 7½%
|
| Marketing: | Drive-by
|
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