New Issue: Psychiatric Solutions upsizes 10-year notes to $220 million, sets yield at 7¾%

By Paul A. Harris

St. Louis, June 30 - Psychiatric Solutions Inc. priced an upsized $220 million issue of 10-year senior subordinated notes (B3/B-) at par on Thursday to yield 7¾%, according to a syndicate source.

Price talk was for a yield of 7¾% to 8%.

Citigroup ran the books for the Rule 144A/Regulation S with registration rights issue. The co-managers were Banc of America Securities, JP Morgan, Lehman Brothers and Merrill Lynch & Co.

Proceeds will be used to fund a portion of the acquisition of 20 inpatient psychiatric facilities from Ardent Health Services and for general corporate purposes.

The issue was upsized from $150 million.

Psychiatric Solutions is a Franklin, Tenn.-based company.

Issuer:	Psychiatric Solutions Inc.
Amount:	$220 million (increased from $150 million)
Maturity:	July 15, 2015
Security description:	Senior subordinated notes
Bookrunner:	Citigroup
Co-managers:	Banc of America Securities, JP Morgan, Lehman Brothers, Merrill Lynch & Co.
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	379 basis points
Call features:	Callable after July 15, 2010 at 103.875, then 102.58, 101.29, declining to par on and after July 15, 2013
Trade date:	June 30
Settlement date:	July 6
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	7¾%-8%

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