Published on 9/6/2012 in the Prospect News High Yield Daily.
New Issue: HealthSouth sells upsized $275 million 5¾% 12-year notes at par
By Paul A. Harris
Portland, Ore., Sept. 6 - HealthSouth Corp. priced an upsized $275 million issue of 12-year senior notes (B1/BB-/) at par to yield 5¾% on Thursday, according to a syndicate source.
The yield printed at the tight end of the 5¾% to 5 7/8% yield talk.
Wells Fargo Securities, LLC, Barclays, Citigroup Global Markets, Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. were the joint bookrunners for the quick-to-market issue, which was upsized from $250 million.
The Birmingham, Ala.-based owner and operator of hospitals plans to use the proceeds to repay amounts on its revolving credit facility as well as to redeem up to 10% of its 7¼% senior notes due 2018 and its 7¾% senior notes due 2022, and for general corporate purposes.
| Issuer: | HealthSouth Corp.
|
| Amount: | $275 million, increased from $250 million
|
| Maturity: | Nov. 1, 2024
|
| Securities: | Senior notes
|
| Bookrunners: | Wells Fargo Securities, LLC, Barclays, Citigroup Global Markets, Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 1, 2017, then callable at 102.875, 101.917, 100.958, par on and after Nov. 1, 2020
|
| Equity clawback: | 35% at 105.75 until Nov. 1, 2015
|
| Trade date: | Sept. 6
|
| Settlement date: | Sept. 11
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 5¾% to 5 7/8%
|
| Marketing: | Quick to market
|
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