New Issue: LifePoint Health prices upsized $500 million eight-year notes at par to yield 5 7/8%

By Paul A. Harris

Portland, Ore., Nov. 19 – LifePoint Health, Inc. launched and priced an upsized $500 million issue of eight-year senior notes (Ba2/BB-/BB) at par to yield 5 7/8% on Thursday, according to a syndicate source.

The issue size was increased from $300 million.

The yield printed at the tight end of yield talk that had been set in the 6% area.

Citigroup Global Markets, Barclays, BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC and UBS Investment Bank were the joint bookrunners.

The Brentwood, Tenn.-based health care services provider plans to use the proceeds for general corporate purposes, including acquisitions, and for share repurchases from time to time.

Issuer:	LifePoint Health, Inc.
Amount:	$500 million, upsized from $300 million
Maturity:	Dec. 1, 2023
Securities:	Senior notes
Bookrunners:	Citigroup Global Markets, Barclays, BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, UBS Investment Bank
Co-managers:	Fifth Third Bank, MUFG, SunTrust Robinson Humphrey, Credit Agricole CIB, Regions, SMBC Nikko
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	385 bps
Call:	Make-whole call at Treasuries plus 50 bps until Dec. 1, 2018, then callable at 104.406
Equity clawback:	35% at 105.875 until Dec. 1, 2018
Investor put:	101% upon change of control
Trade date:	Nov. 19
Settlement date:	Dec. 4
Rating:	Moody’s: Ba2
	Standard & Poor’s: BB-
	Fitch: BB
Distribution:	SEC registered
Price talk:	6% area
Marketing:	Quick to market

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