Centric Health gets tenders for $164 million 8 5/8% second-lien notes

By Angela McDaniels

Tacoma, Wash., Feb. 19 – Centric Health Corp. received tenders for C$164,264,000 principal amount, or 86.4%, of its 8 5/8% second-lien senior secured notes due April 18, 2018, according to a company news release.

All of the tendered notes were accepted for purchase.

The tender offer for the notes began Jan. 19, and the payment date is expected to be Feb. 22.

The purchase price is par plus accrued interest.

The company also announced that it received consent from holders of 79.3% of the outstanding notes to amend the indenture. The consents received are enough to approve the proposed amendments.

The amendments are expected to become effective Feb. 22 and will provide the company, subject to certain limitations, with additional flexibility to, among other things, repurchase, redeem or otherwise acquire for value or retire its outstanding securities, make interest and principal payments on subordinated debt, incur additional debt, alter the size of its revolving credit facility, make distributions to shareholders and make additional acquisitions and dispositions.

Following the completion of the tender offer, the total remaining principal amount of the notes outstanding will be C$25,894,000.

The notes are callable beginning April 18, 2017.

In connection with the tender offer and the consent solicitation, Centric Health no longer has Standard & Poor's or Dominion Bond Rating Services rate the notes.

Centric Health is a Toronto-based provider of health-care services.

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