Option Care Health talks $500 million eight-year notes at 4½% area; pricing Friday

By Paul A. Harris

Portland, Ore., Oct. 22 – Option Care Health, Inc. talked its $500 million offering of eight-year senior notes (B3/B-) to yield in the 4½% area, according to market sources.

Official talk comes inside of initial guidance in the high 4% area.

Books close at 12:30 p.m. ET on Friday, and the deal is expected to price later in the day.

BofA Securities Inc. and Morgan Stanley & Co. LLC are the joint bookrunners. J.P. Morgan Securities LLC and Truist Securities Inc. are the co-managers.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

The Bannockburn, Ill.-based provider of home and alternate treatment site infusion therapy services plans to use the proceeds plus a new first-lien term loan and cash on hand to refinance its existing first-lien term loan.

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