New Issue: Spheris prices $125 million eight-year notes at par to yield 11%

By Paul A. Harris

St. Louis, Dec. 17 - Spheris Inc. sold $125 million of eight-year senior subordinated notes (Caa2/CCC+) at par to yield 11% on Friday, according to a market source.

Price talk was 10¾% to 11%.

JP Morgan and UBS Investment Bank were the underwriters of the Rule 144A issue.

Proceeds will be used to repay debt.

Spheris is a Franklin, Tenn.-based medical transcription company.

Issuer:	Spheris Inc.
Amount:	$125 million
Maturity:	Dec. 15, 2012
Security description:	Senior subordinated notes
Underwriters:	JP Morgan, UBS Investment Bank
Coupon:	11%
Price:	Par
Yield:	11%
Spread:	699 basis points
Call features:	Make-whole call at Treasuries plus 50 basis points until Dec. 15, 2008, then callable at 105.50, 102.75 and par on and after Dec. 15, 2010
Equity clawback:	Until Dec. 15, 2007 for 35% at 111.0
Trade date:	Dec. 17
Settlement date:	Dec. 22
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC+
Price talk:	10¾%-11%

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