Several $5 million pieces of Iasis Healthcare traded in the 100 3/4 range last week in the wake of a $200 million initial public offering that will pay down bank debt. Names of buyers and sellers could not be determined, but dealers said the credit is attractive for its yield value. "People want to play a yield to call; it's going to get paid down at 101," a trader said. "People that want to play healthcare know that it's a name that's done fairly well."
One of the few healthcare names to escape industry woes, Iasis is said to be strong because it specializes in hospitals, rather than nursing homes or long-term healthcare. "Hospitals are doing very well. It's the long-term care industry that doesn't trade well," said a dealer. Iasis, based in Franklin, Tenn., owns or leases 15 hospitals in Salt Lake City, Phoenix, and St. Petersburg, Fla., as well as four Texas cities, which includes San Antonio. A spokeswoman did not return calls for comment.
Iasis has a $455 million credit facility that breaks down into three tranches. It is priced at 425 basis points over LIBOR. J.P. Morgan Chase, BNP Paribas, Bank of Nova Scotia and General Electric Capital Corp. are the lead arrangers, according to Capital DATA Loanware.