By Paul A. Harris
Portland, Ore., Oct. 27 – MultiPlan priced an upsized $1.3 billion issue of eight-year senior notes (B3/B-) at par to yield 5¾% on Tuesday, according to market sources.
The issue size increased from $1.2 billion.
The yield printed at the wide end of the 5 5/8% to 5¾% revised yield talk and in the middle of earlier talk in the 5¾% area.
Active bookrunner Goldman Sachs & Co. LLC will bill and deliver. Citigroup Global Markets Inc. was also an active bookrunner. Joint bookrunners were Barclays, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Securities LLC.
The notes were sold via MPH Acquisition Holdings LLC.
The New York-based provider of health care cost management solutions plans to use the proceeds plus borrowings under its new senior secured credit facilities, together with about $715 million of cash on hand, to redeem all of the outstanding 7 1/8% notes due 2024.
The company postponed plans to refinance its term loan B.
On Monday MultiPlan also postponed its $2.47 billion term loan.
The loan met with resistance from lenders because its covenants allowed too much incremental first-lien flexibility, a trader said.
| Issuer: | MPH Acquisition Holdings LLC
|
| Amount: | $1.3 billion, increased from $1.2 billion
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| Maturity: | Nov. 1, 2028
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| Securities: | Senior notes
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| Active bookrunners: | Goldman Sachs & Co. LLC (bill and deliver) and Citigroup Global Markets Inc.
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| Joint bookrunners: | Barclays, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Securities LLC
|
| Coupon: | 5¾%
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| Price: | Par
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| Yield: | 5¾%
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| Spread: | 508 bps
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| Call protection: | Three years
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| Trade date: | Oct. 27
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| Settlement date: | Oct. 29
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| Ratings: | Moody's: B3
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5 5/8% to 5¾%, revised from 5¾% area
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