RegionalCare ups talk on $1.58 billion eight-year notes to 9½%-9¾%; books close Wednesday

By Paul A. Harris

Portland, Ore., Nov. 13 – RegionalCare Hospital Partners Holdings, Inc. and LifePoint Health, Inc. increased price talk on a $1,575,000,000 offering of eight-year senior notes (Caa1/CCC+) to 9½% to 9¾% on Tuesday from earlier talk of 9% to 9¼%, according to market sources.

The Rule 144A for life deal also underwent covenant changes bearing primarily upon how the company may disburse cash, manage assets and incur additional debt.

Books close at 4 p.m. ET on Tuesday.

Barclays is the left lead bookrunner. Citigroup Global Markets Inc., RBC Capital Markets LLC, Deutsche Bank Securities Inc. and UBS Securities LLC are the joint bookrunners.

The notes come with three years of call protection.

Proceeds, along with a $4.2 billion credit facility and up to $1 billion of sponsor equity from Apollo, will be used to fund the merger of RegionalCare Hospital Partners with LifePoint Health.

RegionalCare and LifePoint are both Brentwood, Tenn.-based health care providers. The combined company will operate under the LifePoint Health name.

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