By Paul A. Harris
Portland, Ore., June 13 – U.S. Renal Care, Inc. priced a $505 million issue of 10 5/8% eight-year senior notes (Caa2/CCC+) at par to yield 10.622% on Thursday, according to a market source.
The yield printed toward the wide end of yield talk in the 10½% area.
The deal underwent covenant changes that bear primarily upon how the company may disburse cash and incur additional debt.
Barclays was the lead left bookrunner. Joint bookrunners were BofA Securities Inc., BMO Capital Markets Corp., Macquarie Capital, RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc.
Proceeds will be used to fund the buyout of U.S. Renal Care by an investor group comprised of Chris Brengard and the U.S. Renal Care management team, Bain Capital Private Equity, Summit Partners, Revelstoke Capital Partners and Mark Caputo.
The issuing entity will be BCPE Cycle Merger Sub II, Inc. prior to the completion of the buyout, whereupon the issuer will be U.S. Renal Care, a Plano, Tex.-based provider of dialysis services.
| Issuer: | BCPE Cycle Merger Sub II, Inc., to be merged with and into U.S. Renal Care, Inc.
|
| Amount: | $505 million
|
| Maturity: | July 15, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | BofA Securities Inc., BMO Capital Markets Corp., Macquarie Capital, RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 10 5/8%
|
| Price: | Par
|
| Yield: | 10.622%
|
| Spread: | 861 bps
|
| First call: | July 15, 2022 at 105.313
|
| Trade date: | June 13
|
| Settlement date: | June 28
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10½% area
|
| Marketing: | Roadshow
|
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