By Paul A. Harris
Portland, Ore., Feb. 11 – LifePoint Health, Inc. priced a $600 million issue of seven-year senior secured notes (B1/B+) at par to yield 4 3/8% in a Tuesday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 4½% area. Initial guidance had the notes coming to yield 4¾% to 5%.
The deal was six-times oversubscribed at 4¾%, according to a market source, who added that most investors remained in the deal when the 4½% area price talk came out.
Bookrunners were Barclays, Citigroup Global Markets Inc., RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC.
The Brentwood, Tenn.-based health care provider plans to use the proceeds, along with its incremental term loan B, to refinance its 8¼% senior secured notes due 2023 and its 11½% senior notes due 2024.
| Issuer: | LifePoint Health, Inc.
|
| Amount: | $600 million
|
| Maturity: | Feb. 15, 2027
|
| Securities: | Senior secured notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC
|
| Co-manager: | Apollo Global Securities, LLC
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Spread: | 287 bps
|
| First call: | Feb. 15, 2022 at 102
|
| Equity clawback: | 40% at 104.375 until Feb. 15, 2022
|
| Trade date: | Feb. 11
|
| Settlement date: | Feb. 13
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4½% area
|
| Marketing: | Drive-by
|
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