By Andrea Heisinger
New York, Oct. 25 - Catholic Health Initiatives on Thursday priced $1.5 billion of taxable bonds (Aa3/AA-/) in three tranches, a source away from the trade said.
A $250 million tranche of five-year notes sold at a spread of 80 basis points over Treasuries.
There was a $500 million tranche of 10-year notes priced at a spread of Treasuries plus 115 bps.
Finally, a $750 million tranche of 30-year bonds sold at a spread of Treasuries plus 140 bps.
All of the securities were priced about 20 bps tighter than guidance, the source said.
Full terms of the sale were not available at press time.
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will go toward covering the $500 million to $550 million cost of acquiring the other half of Alegent Creighton Health from Catholic Health's co-owner, along with other general corporate purposes, including ambulatory and physician expansion and technology investments.
The non-profit health organization is based in Englewood, Colo.
| Issuer: | Catholic Health Initiatives
|
| Issue: | Taxable bonds
|
| Amount: | $1.5 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Trade date: | Oct. 25
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: AA-
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | 2017
|
| Spread: | Treasuries plus 80 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | 2022
|
| Spread: | Treasuries plus 115 bps
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | 2042
|
| Spread: | Treasuries plus 140 bps
|
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