Health Management Associates looks to amend 1.5% convertibles

New York, Nov. 10 - Health Management Associates Inc. said it has started a solicitation of consents to amend its 1.5% convertible senior subordinated notes due 2023.

The Naples, Fla., hospital operator said it wants to be able to pay cash for the notes if there is an event of default so that it can preserve the current accounting treatment for the convertibles. It noted that it is not in default and does not expect to be.

At present the note indenture prevents the company from paying cash on conversion of the notes if there is a default.

For other conversions, Health Management is able to pay cash, stock or a combination.

Holders who deliver consents will receive a fee of $2.50 per $1,000 principal amount.

The solicitation ends at 5 p.m. ET on Nov. 23.

The offer is subject to the company receiving consents from holders of a majority of the notes.

Global Bondholder Services Corp. is the information agent (866 389-1500). Merrill Lynch & Co. is the solicitation agent (888 654-8637).

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