New Issue: Health Management $500 million convertible yields 1.5%, up 45%

By Ronda Fears

Nashville, July 24 - Health Management Associates Inc. sold $500 million of 20-year convertible senior notes at par to yield 1.5% coupon with a 45% initial conversion premium, via joint lead managers Banc of America Securities, Lehman Brothers and Wachovia Securities.

The Rule 144A deal launched and priced before the open Thursday.

Health Management said proceeds will be used to redeem all of its outstanding 0.25% convertible senior subordinated debentures due 2020 and for general corporate purposes.

Terms of the new deal are:

Issuer: Health Management Associates Inc.

Issue:	Convertible senior subordinated notes
Joint lead managers:	Banc of America Securities, Lehman Brothers, Wachovia Securities
Amount	$500 million
Greenshoe:	$75 million
Maturity:	Aug. 1, 2023
Coupon:	1.5%
Price:	Par
Yield:	1.5%
Conversion premium:	45%
Conversion price:	$27.39
Conversion ratio:	36.50497
Call:	Non-callable for 5 years
Put:	In years 3, 5, 10 and 15
Contingent conversion:	130%
Contingent payment:	120%
Expected ratings:	Moody's: Baa3
	S&P: BBB
Price talk:	NA
Pricing date:	July 24, before the open
Settlement:	July 29
Distribution:	Rule 144A

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