New Issue: MedImpact prices $160 million tap of 10½% notes due 2018 at 105 to yield 8.809%

By Paul A. Harris

Portland, Ore., July 19 - MedImpact Holdings, Inc. priced a $160 million tack-on to its 10½% senior secured notes due Feb. 1, 2018 (Caa2/B-) at 105.00 on Friday, according to an informed source.

The yield to worst is 8.809%.

Credit Suisse Securities (USA) LLC was the bookrunner.

The San Diego-based full-service pharmacy benefit management company plans to use the proceeds to fund the acquisition of Medical Security Card Co., LLC, which does business as ScriptSave.

Issuer:	MedImpact Holdings, Inc.
Face amount:	$160 million
Proceeds:	$169 million
Maturity:	Feb. 1, 2018
Security description:	Tack-on to the 10½% senior secured notes due Feb. 1, 2018
Bookrunner:	Credit Suisse Securities (USA) LLC
Coupon:	10½%
Price:	105.00
Yield to worst:	8.809%
Spread:	797 bps
First call:	Feb. 1, 2015 at 105.25
Equity clawback:	35% at 110.50 until Feb. 1, 2014
Investor put:	101%
Trade date:	July 19
Settlement date:	Aug. 1
Ratings:	Moody's: Caa2
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S for life
Marketing:	Quick to market
Original issue:	$230 million priced at 98.799 to yield 10¾% in February 2011
Fungibility:	Tack-on notes will be fungible with the existing notes upon consummation of the proposed acquisitions
Total issue size:	$390 million

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