By Paul A. Harris
Portland, Ore., Nov. 4 – York Risk Services Holding Corp. priced a $45 million add-on to its 8½% senior notes due Oct. 1, 2022 (Caa2/CCC+/) at par to yield 8.497% on Tuesday, according to an informed source.
The reoffer price came on top of price talk.
Morgan Stanley &Co. LLC and BofA Merrill Lynch were the joint bookrunners.
Proceeds, together with $60 million of loans under the delayed-draw term loan facility and the expected rollover equity contribution of about $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.
| Issuer: | York Risk Services Holding Corp.
|
| Amount: | $45 million
|
| Maturity: | Oct. 1, 2022
|
| Security description: | Add-on to 8½% senior notes due Oct. 1, 2022
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8.497%
|
| Spread: | 637 bps
|
| First call: | Oct. 1, 2017 at 104.25
|
| Trade date: | Nov. 4
|
| Settlement date: | Nov. 10 with accrued interest
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | Par
|
| Marketing: | Quick to market
|
| Original issue: | $270 million priced at par on Sept. 17, 2014
|
| Fungibility: | Add-on notes will be fungible with the original notes upon consummation of the MCMC acquisition, expected at the end of November
|
| Total issue size: | $315 million
|
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