-- [B] New Deal: AdvancePCS $200 mln 7-years via BAS/ML, yield 8.5% --
By Paul Deckelman
New York, March 7 (BridgeNews)- AdvancePCS Inc. sold $200 million seven-year Rule 144A senior notes Wednesday via joint book-running managers Banc of America Securities and Merrill Lynch, syndicate sources said. The notes priced at par to yield 8.50%, inside of initial pre-deal market price talk suggesting a yield of 8.625%, and at the narrow end of revised talk of a 8.5% to 8.625% yield range.
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The Irving, Tex.-based pharmacy benefits management service provider will use deal proceeds for to repay existing senior subordinated indebtedness associated with the $1 billion sale of the company last fall by Rite Aid Corp. to Advance Paradigm Inc.
Co-managers on the deal were J.P. Morgan Chase, Scotia Capital, Banc One Capital Markets and CIBC World Markets.
Full terms are:
Issuer: AdvancePCS Inc.
Book managers: Banc of America Securities, Merrill Lynch (joint)
Amount: $200 million
Maturity Apr. 1, 2008
Coupon rate: 8.50%
Price: Par
Yield: 8.50%
Spread: 355 basis points
Call: Non-callable for four years; then at 104.25, 102.125, Par
Equity clawback: Three-year for 35% at 108.5
Settlement: March 13, flat
Ratings: Moody's: B1 S&P: BB-
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Paul Deckelman, BridgeNews, Tel: 212-372-2757
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