25 Feb, 2021

US Acute Care Solutions places secured notes at par to yield 6.375%; terms

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