New Issue: MedImpact prices $230 million 10½% seven-year notes to yield 10¾%

By Paul A. Harris

Portland, Ore., Feb. 1 - MedImpact Holdings, Inc. priced a slightly upsized $230 million issue of 10½% seven-year senior secured notes (Caa2) at 98.799 to yield 10¾% on Tuesday, according to an informed source.

The yield printed at the wide end of the 10½% to 10¾% yield talk. The reoffer price came in line with the 1 to 1.5 points of discount talk.

Credit Suisse Securities, Bank of America Merrill Lynch and Jefferies & Co. were the joint bookrunners for the issue, which was upsized from $225 million.

There were also covenant changes.

The San Diego-based pharmacy benefits management company will use the proceeds to repay third-party claims and revolver debt, as well as for general corporate purposes and to fund a dividend.

Issuer:	MedImpact Holdings, Inc.
Face amount:	$230 million, upsized from $225 million
Proceeds:	$227,238,000 (approximate)
Maturity:	Feb. 1, 2018
Securities:	Senior secured notes
Bookrunners:	Credit Suisse Securities, Bank of America Merrill Lynch, Jefferies & Co.
Coupon:	10½%
Price:	98.799
Yield:	10¾%
Spread:	800 bps
Call protection:	Callable after Feb. 1, 2015 at 105.25
Equity clawback:	35% at 110.50 until Feb. 1, 2014
Trade date:	Feb. 1
Settlement date:	Feb. 8
Rating:	Moody's: Caa2
Distribution:	Rule 144A for life
Price talk:	10½% to 10¾% with 1 to 1.5 points OID
Marketing:	Roadshow

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