By Paul A. Harris
Portland, Ore., Feb. 4 – Vizient, Inc. priced an upsized $600 million issue of eight-year senior notes (Caa1/CCC+) at par to yield 10 3/8% on Thursday, according to a market source.
The yield printed in the middle of the 10¼% to 10½% yield talk.
The deal size was increased from $500 million after having been previously increase from $400 million earlier in the week.
With the upsizings of the notes issue, the concurrent term loan was successively downsized to $1,275,000,000 from $1,375,000,000 after having previously been downsized from $1,475,000,000.
Barclays was the bookrunner.
The Irving, Texas-based network of not-for-profit health care organizations plans to use the proceeds to finance the acquisition of the Spend and Clinical Resource Management and Sg2 businesses from MedAssets Inc.
| Issuer: | Vizient, Inc.
|
| Amount: | $600 million, increased from $500 million after having previously been increased from $400 million
|
| Maturity: | March 1, 2024
|
| Securities: | Senior notes
|
| Bookrunner: | Barclays
|
| Coupon: | 10 3/8%
|
| Price: | Par
|
| Yield: | 10 3/8%
|
| Spread: | 867 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until March 1, 2019, then callable at 107.781
|
| Equity clawback: | 40% at 110.378 until March 1, 2019
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 4
|
| Settlement date: | Feb. 11
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10¼% to 10½%
|
| Marketing: | Roadshow
|
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