Quorum Health talks $400 million notes in 12% area with 1 point OID

By Paul A. Harris

Portland, Ore., April 7 – Quorum Health Corp. talked its $400 million offering of seven-year senior notes (Caa1/CCC+) to yield in the 12% area including an original issue discount of approximately 1 point, according to a syndicate source.

Books are scheduled to close at 1 p.m. ET Friday.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are the joint bookrunners for the Rule 144A and Regulation S with registration rights offer.

The notes become callable after three years at par plus 75% of the coupon and feature a three-year 35% equity clawback and a 101% poison put.

Proceeds will be used to help fund the spinoff of the company from Community Health Systems Inc.

Quorum Health is a Brentwood, Tenn.-based operator and manager of general acute care hospitals and outpatient services

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