MultiPlan upsizes to $1.05 billion, launches seven-year senior secured notes at 5½%

By Paul A. Harris

Portland, Ore., Aug. 17 – MultiPlan Corp. upsized its offering of seven-year senior secured notes (Ba3/B+) to $1.05 billion from $775 million and launched the deal at 5½% on Tuesday, according to market sources.

Books were scheduled to close at 4:30 p.m. ET on Tuesday, and the deal was set to price and allocate thereafter.

However, no deal terms were available well after the Tuesday close, sources said.

Price talk was in the 5½% area, in line with initial guidance in the mid-5% area.

Goldman Sachs & Co. LLC is the left bookrunner. Barclays, Citigroup Global Markets Inc., BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Securities LLC are the joint bookrunners.

The Rule 144A for life notes become callable after three years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The issuing entity will be MPH Acquisition Holdings LLC, a wholly owned subsidiary of MultiPlan.

The New York-based provider of health care cost management solutions plans to use the proceeds plus borrowings under its new senior secured term loan to pay off its existing senior secured term loan.

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