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Health Management begins tender offers for 6 1/8% notes, 7 3/8% notes
By Susanna Moon
Chicago, Jan. 10 - Health Management Associates, Inc. said it began cash tender offers for its $400 million outstanding principal amount of 6 1/8% senior notes due 2016 and $875 million outstanding principal amount of 7 3/8% senior notes due 2020.
The company also is soliciting consents to eliminate substantially all of the covenants and default provisions, according to a press release.
Health Management plans to merge with Community Health Systems, Inc., and the company plans to complete one or more debt financing transactions to fund the offers, the press release noted.
The total purchase price per $1,000 principal amount will be $1,118.13 for the 6 1/8% notes and $1,161.88 for the 7 3/8% notes.
The total amount includes a consent payment of $30.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on Jan. 23, the consent date.
Those who tender after the consent deadline will receive the total purchase price less the consent payment.
Holders will also receive accrued interest up to but excluding the settlement date, which will be Jan. 24 for early tendered notes.
The tender offers will end at 11:59 p.m. ET on Feb. 6.
Tendered notes may be withdrawn and consents may be revoked by the consent deadline.
The tender offers and consent solicitations are conditioned on the completion of the merger, the completion of the financing and the execution of supplemental indentures.
The tender and information agent is D.F. King & Co. Inc. (800 290-6427). BofA Merrill Lynch (888 292-0070 and 980 387-3907 collect) and Credit Suisse (800 820-1653 and 212 538-2147) are the dealer managers and solicitation agents for the tender offers and consent solicitations.
Health Management is a Naples, Fla.-based operator of acute care hospitals.
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