Published on 7/29/2014 in the Prospect News High Yield Daily.
New Issue: Universal Health prices $600 million secured notes in two tranches
By Paul A. Harris
Portland, Ore., July 29 – Universal Health Services, Inc. priced $600 million of senior secured notes (expected ratings Ba1/BB+) in two tranches on Tuesday, according to a market source.
The quick-to-market deal came in two $300 million tranches.
A tranche of non-callable five-year notes priced at par to yield 3¾%, at the tight end of yield talk in the 3 7/8% area.
A tranche of eight-year notes priced at par to yield 4¾%, at the wide end of yield talk in the 4 5/8% area.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co. and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
The King of Prussia, Pa.-based hospital company plans to use the proceeds to refinance debt.
| Issuer: | Universal Health Services, Inc.
|
| Amount: | $600 million
|
| Securities: | Senior secured notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc.
|
| Senior co-managers: | Credit Agricole CIB, Deutsche Bank Securities Inc., Mizuho, RBC Capital Markets, Wells Fargo Securities LLC, MUFG
|
| Co-managers: | Fifth Third Bank, PNC Capital Markets, Santander, SMBC Nikko, TD Securities
|
| Trade date: | July 29
|
| Settlement date: | Aug. 7
|
| Expected ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Quick to market
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | Aug. 1, 2019
|
| Coupon: | 3¾%
|
| Price: | Par
|
| Yield: | 3¾%
|
| Spread: | 206 bps
|
| Call protection: | Non-callable
|
| Price talk: | 3 7/8% area
|
|
|
| Eight-year notes
|
| Amount: | $300 million
|
| Maturity: | Aug. 1, 2022
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Spread: | 247 bps
|
| First call: | Aug. 1, 2017 at 103.563
|
| Price talk: | 4 5/8% area
|
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