Radiology Partners Inc. has wrapped an $800 million offering of five-year senior secured notes, with pricing at the tight end of guidance according to market sources. Barclays, Goldman Sachs, J.P. Morgan, Deutsche Bank, Fifth Third and BofA Securities were joint bookrunners for the deal, which was completed with a $150 million increase.
Radiology Partners, a portfolio company of New Enterprise Associates, is a radiology practice that serves more than 850 hospitals and other healthcare facilities in the U.S.
Proceeds of the notes, along with $150 million in new cash equity and $129 million of cash, will be used to fund the acquisition of Mednax Radiology Solutions, a division of MEDNAX Inc., in a transaction with an enterprise value of approximately $885 million. Any remaining proceeds will be used for general corporate purposes. Terms:
| Issuer | Radiology Partners, Inc. | |
| Ratings | B-/B3 | |
| Amount | $800 million | |
| Issue | Senior secured notes (144A/Reg S for life) | |
| Coupon | 5.25% | |
| Price | 100 | |
| Yield | 5.25% | |
| Spread | T+483 | |
| Maturity | Dec. 15, 2025 | |
| Call | Non-call two (first call at par +50% coupon) | |
| Trade (date) | Dec. 4, 2020 | |
| Settle | Dec. 15, 2020 (T+7) | |
| Joint bookrunners | Barc/GS/JPM/DB/FifthThird/BofA | |
| Co-manager | Roberts&Ryan | |
| Price talk | 5.375% area | |
| Notes | Upsized from $650 million; issuer may redeem up to 10% of the original principal amount of the bonds per annum, at a redemption price of 103%; change of control put at 101; up to 40% equity claw at 105.25% until Dec. 15, 2022. |