York Risk Services talks $270 million eight-year notes at 8¼%-8½%; pricing Wednesday

By Paul A. Harris

Portland, Ore., Sept. 17 – York Risk Services Holdings Corp. talked a $270 million offering of eight-year senior notes (expected ratings Caa2/CCC+) to yield 8¼% to 8½%, according to a syndicate source.

Books close at 1 p.m. ET Wednesday, and the deal is set to price thereafter.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, RBC Capital Markets, Barclays, BMO Securities and Nomura are the joint bookrunners for the Rule 144A and Regulation S for life offering.

The notes come with three years of call protection.

Proceeds, together with proceeds from a senior secured credit facility, equity contributions and cash on the balance sheet, will be used to help fund the buyout of the company by Onex Corp. from ABRY Partners and to retire certain existing debt.

The issuing entity will by Onex York Acquisition Corp., which is to be merged with York Insurance Parent Corp. and is to be renamed York Risk Services Holdings Corp.

York Risk Services is a Parsippany, N.J.-based provider of risk management, claims management and managed care services.

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