York Risk Services to price $45 million tap of 8½% notes due 2022 in Tuesday drive-by

By Paul A. Harris

Portland, Ore., Nov. 4 – York Risk Services Holding Corp. plans to price a $45 million add-on to its 8½% senior notes due Oct. 1, 2022 (expected ratings Caa2/CCC+) on Tuesday, trailing a mid-morning conference call with investors, according to an informed source.

Morgan Stanley & Co. LLC and BofA Merrill Lynch are the joint bookrunners for the Rule 144A and Regulation S for life offering.

The notes become callable after Oct. 1, 2017 at 104.25.

Proceeds, together with $60 million of loans under a delayed-draw term loan facility and the expected rollover equity contribution of approximately $35 million from certain equity and option holders of MCMC Holdings, will be used to fund the acquisition of MCMC LLC, a managed care services company based in Quincy, Mass.

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

The original $270 million issue priced at par on Sept. 17, 2014.

The add-on notes will be fungible with the original notes upon consummation of the MCMC acquisition, which is expected at the end of November.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.