By Cristal Cody
Tupelo, Miss., Oct. 23 – Banner Health priced $603.67 million of taxable bonds (AA-/AA-) in two tranches, according to a market source.
A $301,835,000 tranche of 1.897% bonds due Jan. 1, 2031 priced at par to yield a spread of 110 basis points over Treasuries.
Banner Health sold $301,835,000 of 2.913% bonds due Jan. 1, 2051 at par to yield a Treasuries plus 130 bps spread.
Morgan Stanley & Co. LLC was the lead manager.
Proceeds will be used to refinance outstanding debt and for general corporate purposes.
Banner Health is a non-profit health system based in Phoenix.
| Issuer: | Banner Health
|
| Amount: | $603.67 million
|
| Description: | Series 2020C taxable bonds
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Co-managers: | Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
|
| Trade date: | Oct. 20
|
| Settlement date: | Oct. 29
|
| Ratings: | S&P: AA-
|
| Fitch: AA-
|
| Distribution: | 3(a)(4) exempt
|
|
|
| Bonds due 2031
|
| Amount: | $301,835,000
|
| Maturity: | Jan. 1, 2031
|
| Coupon: | 1.897%
|
| Price: | Par
|
| Yield: | 1.897%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call before July 1, 2030 at Treasuries plus 20 bps; thereafter at par
|
|
|
| Bonds due 2051
|
| Amount: | $301,835,000
|
| Maturity: | Jan. 1, 2051
|
| Coupon: | 2.913%
|
| Price: | Par
|
| Yield: | 2.913%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call before July 1, 2050 at Treasuries plus 20 bps; thereafter at par
|
|
|
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