By Paul A. Harris
Portland, Ore., April 6 – LifePoint Health, Inc. priced an upsized $600 million issue of five-year senior secured notes (B1/B) at par to yield 6¾% in a Monday drive-by, according to market sources.
The issue size increased from $500 million.
The yield printed 12.5 basis points inside of yield talk in the 7% area.
Initial guidance was in the mid-7% area, according to bond trader who added that the quick-to-market Monday deal was a blowout, playing to an order book that ended up being oversubscribed by as much as five times the size of the offer.
Citigroup Global Markets Inc. is the lead bookrunner. Barclays, RBC Capital Markets Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are the joint bookrunners. Apollo Global Securities is the co-manager.
The Brentwood, Tenn.-based health care provider plans to use the proceeds for general corporate purposes.
| Issuer: | LifePoint Health, Inc.
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | April 15, 2025
|
| Securities: | Senior secured notes
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Barclays, RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co.
|
| Co-manager: | Apollo Global Securities
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 632 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until April 15, 2022, then callable at 103.375
|
| Equity clawback: | 40% at 106.75 until April 15, 2022
|
| Trade date: | April 6
|
| Settlement date: | April 13
|
| Rating: | Moody's: B1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7% area
|
| Marketing: | Quick to market
|
|
|
© 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.
