Owensboro Medical, Ky., tenders for up to $16.7 million of two series of bonds in Dutch auction

By Susanna Moon

Chicago, July 13 - Owensboro Medical Health System, Inc. said it will purchase up to $16.7 million of Owensboro Mercy Health System, Inc.'s $51.7 million principal amount 2001 series B variable-rate revenue bonds auction-rate securities due Aug. 1, 2027 and Owensboro Mercy's $55.9 million 2001 series C variable-rate revenue bonds auction-rate securities due Aug. 1, 2030.

The hospital chain, formerly known as Owensboro Mercy Health System, Inc., said it must retire the amount by July 31 as a result of an agreement with the Internal Revenue Service.

The offer will expire at noon ET on July 20.

Owensboro said it will pay between $900 and $980 for each $1,000 principal amount of the bonds plus accrued interest, based on a modified Dutch auction.

Merrill Lynch, Pierce, Fenner & Smith Inc. (Darrel Flanel at 212 449-0615 or email at darrel_flanel@ml.com, or Stephen Claiborn at 713 287-2312 or email at stephen_claiborn@ml.com) is the dealer manager. Wells Fargo Bank, NA (Gregory S. Clarke at 312 845-4385 or email at gregory.s.clarke@wellsfargo.com, or Veronica Salazar at 312 845-9781, or email at veronica.salazar@wellsfargo.com) is the depositary.

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