DaVita HealthCare to redeem any 6 3/8% notes not tendered in offer

By Toni Weeks

San Luis Obispo, Calif., June 26 – DaVita HealthCare Partners Inc. received tenders for about $483 million of its $775 million of 6 3/8% notes due 2018 by 5 p.m. ET on June 23, according to an 8-K filing with the Securities and Exchange Commission.

This is the same amount it had received by 5 p.m. ET on June 17, the consent payment date.

As previously reported, the company had begun a tender offer for any or all of the notes on June 4 and simultaneously solicited consents to amend the notes to eliminate substantially all of the restrictive covenants and some events of default.

The offer continues until midnight ET at the end of July 1.

The company also reported that it has issued a call to redeem any notes that remain outstanding after the offer. The notes will be redeemed at 104.781 plus accrued interest on July 24.

Because the company received consents from holders of a majority of the notes by the June 17 consent payment, the company executed a supplemental indenture to the notes, which was to become operative when the notes were settled on June 24.

The total purchase price is $1,051.25, including a $30.00 consent payment, for each $1,000 principal amount of notes tendered by the early tender date.

Holders who tender notes after the consent deadline will receive the tender offer payment of $1,021.25 per $1,000 of notes, which is the total amount less the consent payment.

The company said it will also pay accrued interest.

Tendered notes may no longer be withdrawn as of the early tender date.

The offer is subject to a financing condition.

DaVita priced $1.75 billion of 5 1/8% 10-year senior notes at par to yield 5.124% on June 10, as previously reported by Prospect News.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760 collect) and Barclays (800 438-3242 or 212 528-7581 collect) are the dealer managers and solicitation agents. D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 800 967-4607 or davita@dfking.com) is the information agent.

DaVita is a kidney care company based in Denver.

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