By Abigail W. Adams
Portland, Me., July 31 – LifePoint Health Inc. priced an upsized $800 million offering of seven-year senior secured notes (B2/B) at par to yield 9 7/8% in a Monday drive-by, according to a market source.
Pricing came at the wide end of tightened talk for a yield of 9¾% to 9 7/8%, which was revised from the initial price talk for a yield of 10% to 10¼%. Early guidance was for a yield of 10¼% to 10½%.
The initial size of the offering was $600 million.
The notes are non-callable for three years.
Citigroup Global Markets Inc. was lead left bookrunner for the Rule 144A and Regulation S offering.
Barclays, BMO Capital Markets Corp., BofA Securities Inc., Capital One Securities Inc., Deutsche Bank Securities Inc., Fifth Third Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., RBC Capital Markets LLC and Wells Fargo Securities LLC are also joint bookrunners.
There is a 40% equity clawback and a 101 poison put.
Proceeds will be used to refinance the company’s 6¾% senior secured notes due 2025.
LifePoint Health is a Brentwood, Tenn.-based health care provider.
| Issuer: | LifePoint Health Inc.
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| Amount: | $800 million
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| Issue: | Senior secured notes
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| Maturity: | Aug. 15, 2030
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| Left bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | Barclays, BMO Capital Markets Corp., BofA Securities Inc., Capital One Securities Inc., Deutsche Bank Securities Inc., Fifth Third Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., RBC Capital Markets LLC and Wells Fargo Securities LLC
|
| Coupon: | 9 7/8%
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| Price: | Par
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| Yield: | 9 7/8%
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| Spread: | 581 bps
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| First call: | Aug. 15, 2026 at par plus 50% of coupon
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| Trade date: | July 31
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| Settlement date: | Aug. 14
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| Ratings: | Moody's: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | Tightened talk for yield of 9¾% to 9 7/8%; initial price talk 10% to 10¼%
|
| Marketing: | Drive-by
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