US Acute Care Solutions LLC has priced $375 million of five-year secured bonds at the tight end of guidance, sources said. Bookrunners were Barclays (lead), Deutsche Bank and Capital One.
Proceeds will be used to support a refinancing of existing debt and, along with a preferred investment from Apollo, will recapitalize the company to increase ownership by its physicians.
US Acute Solutions is a majority physician-owned operator of emergency medicine, observation services and critical care. Terms:
| Issuer | US Acute Care Solutions LLC |
| Ratings | B-/B2 |
| Amount | $375 million |
| Issue | Senior secured notes (144A/Reg S for life) |
| Coupon | 6.375% |
| Price | 100 |
| Yield | 6.375% |
| Spread | T+563 |
| Maturity | March 1, 2026 |
| Call | Non-call two (first call at par plus 50% coupon) |
| Trade (date) | Feb. 25, 2021 |
| Settle | March 5, 2021 (T+6) |
| Bookrunners | Barc (lead)/DB/CapOne |
| Price talk | 6.5% area |
| Notes | Issuer may redeem up-to-10% of the original principal amount of notes per 12-month period at 103%; change of control put at 101; up-to-40% equity claw at 106.375% until March 1, 2023; make-whole at T+50 |