Extendicare starts tender for 9.35% notes

New York, April 5 - Extendicare Health Services Inc. said it has begun a cash tender offer for any and all of its 9.35% senior subordinated notes due 2007.

Extendicare said it is also seeking consents to amend the note indenture to eliminate substantially all restrictive covenants and certain event of default provisions.

Holders who tender must give consent, but the tender is not conditional on receiving the consents needed to amend the indenture.

Holders who tender by the consent date of 5 p.m. ET on April 14 will receive $1,035 per $1,000 principal amount of notes plus accrued interest up to but not including the settlement date.

Holders who tender after the consent date but before the expiration of midnight ET on April 30 will receive $1,005 per $1,000 principal amount plus accrued interest up to but not including the settlement date.

Extendicare said it intends to call any notes not tendered. The current redemption price is $1,031.17 per $1,000 principal amount plus accrued interest.

The tender offer is subject to various conditions including, among other things, the receipt of proceeds from anticipated borrowings under the company's amended credit facility and the sale of new notes.

Extendicare Health Services is a Milwaukee subsidiary of Extendicare Inc., which operates long-term care facilities.

Lehman Brothers Inc. is dealer manager and solicitation agent (contact Liability Management Group at 800 438-3242 or collect at 212 528-7581), and D.F. King & Co. Inc. is information agent and tender agent (888 567-1626 or collect at 212 269-5550).

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