InSight Health to sell $675 million income securities, notes, obtain new loan; to repay notes, bank debt

New York, June 23 - InSight Health Services Holding Corp. plans to sell up to $675 million of Income Deposit Securities and senior subordinated notes, according to an S-1 filing with the Securities and Exchange Commission.

The company also plans to obtain a new credit facility.

Proceeds from the offerings will be used to repay InSight's existing bank debt and to fund a tender offer for its 9 7/8% senior subordinated notes due 2011.

The IDS will be made up of shares of common stock and senior subordinated notes due 2019. After 45 days, holders will be able to separate the securities into their components.

CIBC World Markets and Banc of America Securities LLC are bookrunners for the offerings of IDS and senior subordinated notes.

InSight, a Lake Forest, Calif., provider of diagnostic imaging services, will also obtain a new credit facility with CIBC and Banc of America as joint lead arrangers and joint bookrunners. The S-1 filing did not disclose the size but said the facility will be structured as a revolver and a term loan with a maturity of about five years.

Before the sale of the IDS and new notes, InSight will start a tender offer for its $250 million of 9 7/8% notes.

In addition to funding the tender offer and repayment of InSight's existing bank debt, proceeds from the new financing will be used to establish a capital expenditures reserve account and make a payment to InSight's existing equity investors.

The current bank debt is via a syndicate led by Bank of America NA and consists of a $225 million term loan B, a $50 million second delayed-draw term loan and a $50 million revolver.

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