DaVita $1.35 billion two-tranche notes talked in 6½% area, 7¼% area

By Paul A. Harris

St. Louis, March 14 - DaVita Inc.'s $1.35 billion offering of high-yield notes in two tranches was issued price talk, with pricing expected to take place Tuesday afternoon, according to a syndicate source.

Price talk on a $500 million offering of eight-year senior notes (B2/B), which are non-callable for four years, is in the 6½% area. Price talk on an offering of 10-year senior subordinated notes (B3/B), non-callable for five years, is in the 7¼% area.

JP Morgan is the bookrunner for the Rule 144A with registration rights notes. Credit Suisse First Boston, Banc of America Securities LLC, Wachovia Securities and Bear Stearns & Co. are co-managers.

Proceeds will be used to repay bank debt.

The company extended its roadshow into this week after receiving a subpoena from the U.S. Justice Department.

DaVita is an El Segundo, Calif., kidney dialysis services provider.

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