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Vanguard subsidiaries to redeem all 9% notes, 11¼% notes not tendered
By Angela McDaniels
Tacoma, Wash., Feb. 3 - Vanguard Health Systems, Inc. announced that its subsidiaries' 9% senior subordinated notes due 2014 and 11¼% senior discount notes due 2015 will be redeemed on March 5.
The 9% notes were co-issued by Vanguard Health Holding Co. II, LLC and Vanguard Holding Co. II, Inc., and the 11¼% notes were co-issued by Vanguard Health Holding Co. I, LLC and Vanguard Holding Co. I, Inc.
The redemption price is 104.5 for the 9% notes and 105.625 for the 11¼% notes. Holders will also receive accrued interest up to but excluding the redemption date.
Approximately $20.6 million of the 9% notes and $4.1 million of the 11¼% notes are outstanding, according to a company news release.
As previously reported, tender offers for the notes began on Jan. 14 and will expire at midnight ET on Feb. 11.
The purchase prices in the tender offers are $1,047.50 for each $1,000 principal amount of 9% notes and $1,060.00 for each $1,000 principal amount at maturity of the 11¼% notes. These payouts include a consent payment of $30.00 for each note tendered by the consent deadline, which was 5 p.m. ET on Jan. 29. Holders will also receive accrued interest.
The companies had received tenders for $528,855,000 principal amount, or 91.97%, of the 9% notes and $201,847,000 principal amount at maturity, or 93.45%, of the 11¼% notes as of 5 p.m. ET on Jan. 28.
Bank of America Merrill Lynch (888 292-0070 or call collect 980 388-9217) is the dealer manager and solicitation agent for the tender offers, and Global Bondholder Services Corp. (866 470-4500 or call collect 212 430-3774) is the information agent.
Questions about the notice of redemption can be directed to trustee U.S. Bank NA (800 934-6802).
Vanguard is a Nashville-based owner and operator of acute care hospitals and complementary facilities and services.
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