UPDATE: Care UK Plans Bond To Finance Bridgepoint Buyout

9th Jul 2010 11:01

(Adding roadshow timing, background.) By Michael Wilson Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Care UK Health and Social Care PLC, the parent company of Care UK Limited, plans to issue GBP250 million of seven-year senior secured bonds to finance the acquisition of the company by private-equity company Bridgepoint, the company said Friday. The bonds, which will launch and price following a roadshow next week, will be guaranteed on a senior secured basis by Care UK Health & Social Care Newco Limited, Care UK and other subsidiaries of the company. Proceeds from the transaction will be used to "...partially fund, along with new equity invested by Bridgepoint and management, the acquisition of Care UK and the associated transaction costs," the company said. Care UK was acquired by Bridgepoint earlier this year for around GBP420 million. A group of banks comprising Bank of Ireland, BNP Paribas SA, HSBC Holdings PLC, ING Groep NV, Lloyds Banking Group and Societe Generale SA, provided a EUR210 million senior loan to back the transaction, as well as a small revolving credit facility. Since the start of the transaction, Bridgepoint said it will explore a wide range of financing options. The company has been prudent in capitalizing on the recent rebound in Europe's high-yield bond market as the instruments offer longer maturities and less restrictive covenant and amortization terms than would be available through bank loan financing. The offering is seen as a test of high-yield investor appetite for leveraged buyout companies. If the deal goes ahead and draws good demand, it could open the way for other leveraged buyout companies to refinance themselves via the bond market. -By Michael Wilson, Dow Jones Newswires; 44 20 7842 9349; [email protected] (END) Dow Jones Newswires July 09, 2010 06:01 ET (10:01 GMT)