MultiPlan to price $750 million five-year PIK toggle notes Monday

By Paul A. Harris

Portland, Ore., July 22 - MultiPlan, Inc. plans to price a $750 million offering of five-year senior PIK toggle notes (expected ratings Caa2/CCC+) Monday, following a late morning investor conference call, according to a syndicate source.

The issuing entity will be MPH Intermediate Holding Co. 2.

Barclays is the lead left bookrunner. BofA Merrill Lynch and Goldman Sachs & Co. are the joint bookrunners.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the co-managers.

The deal is formatted as Rule 144A and Regulation S for life.

The issuer will be required to pay interest in cash to the extent that the operating company's restricted payments are available; otherwise, the PIK coupon will 75 basis points higher than the cash coupon.

The notes become callable in one year at 102.

During the non-call period the issuer will have the option to repurchase the notes at 102 with proceeds from an equity offering.

Proceeds, together with a concurrent $100 million add-on term loan, will be used to fund a distribution to shareholders of the ultimate parent company.

MultiPlan is a New York-based provider of health care cost management solutions.

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