By Abigail W. Adams
Portland, Me., April 29 – U.S. Acute Care Solutions LLC priced $800 million of five-year senior secured notes (B3/B-) at 98.071 with a coupon of 9¾% to yield 10¼%, according to a market source.
Pricing came on top of talk for a discounted offer price of 2 points and at the wide end of talk for a yield of 10% to 10¼%.
Early guidance was for a coupon in the high 9% area and a discounted offer price to yield 10¼%.
Timing was accelerated with the deal initially slated to stay in the market until Tuesday.
The notes are non-callable for two years.
Barclays, Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., J.P. Morgan Securities LLC and Capital One Securities Inc. were bookrunners for the Rule 144A and Regulation S for life offering.
Proceeds will be used to refinance the company’s senior secured notes and to repay borrowings under a revolving credit facility.
U.S. Acute Care Solutions is a Canton, Ohio-based physician-owned emergency medicine, hospital and observation services provider.
| Issuer: | U.S. Acute Care Solutions LLC
|
| Amount: | $800 million
|
| Issue: | Senior secured notes
|
| Maturity: | May 15, 2029
|
| Joint bookrunners: | Barclays, Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., J.P. Morgan Securities LLC and Capital One Securities Inc.
|
| Co-manager: | Apollo
|
| Coupon: | 9¾%
|
| Price: | 98.071
|
| Yield: | 10¼%
|
| Spread: | Treasuries plus 559 bps
|
| First call: | May 15, 2026 at 104.875
|
| Trade date: | April 29
|
| Settlement date: | May 8
|
| Ratings: | Moody's: B3
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | OID of 2 points and yield of 10% to 10¼%
|
| Marketing: | Investor call
|
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