New Issue: Quorum Health sells $400 million 11 5/8% seven-year notes to yield 12%

By Paul A. Harris

Portland, Ore., April 8 – Quorum Health Corp. priced a $400 million issue of 11 5/8% seven-year senior notes (Caa1/CCC+) at 98.266 to yield 12% on Friday, according to a syndicate source.

The yield printed on top of yield talk. The reoffer price came cheap to discount talk of approximately 1 point.

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. were the joint bookrunners.

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.

Issuer:	Quorum Health Corp.
Face amount:	$400 million
Proceeds:	$396,064,000
Maturity:	April 15, 2023
Securities:	Senior notes
Bookrunners:	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, SunTrust Robinson Humphrey Inc.
Coupon:	11 5/8%
Price:	98.266
Yield:	12%
Spread:	1,053 bps
First call:	April 15, 2019 at 108.719
Equity clawback:	35% at 111.625 until April 15, 2019
Trade date:	April 8
Settlement date:	April 22
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	12% yield with about 1 point OID
Marketing:	Roadshow

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.