NDCHealth considering new convertible

New York, Aug. 5 - NDCHealth Corp. said it is considering issuing new convertibles or equity-linked securities as one option to refinance its outstanding $143.8 million 5% convertible subordinated notes due Nov. 1, 2003.

The Atlanta, Ga. provider of health information services said it is also looking at issuing senior debt as an alternative to or in combination with a new convertible or equity-linked security.

NDCHealth said in a filing with the Securities and Exchange Commission that it continues to monitor the capital markets.

If the refinancing is completed in fiscal 2003 it would reduce diluted earnings per share by between zero and four cents. There would also be a one-time charge for the extinguishment of debt of two to three cents per share, the SEC filing said.

Under a new $150 million three-year revolving credit facility NDCHealth took out in the fourth quarter of fiscal 2002, the company does not need to refinance the existing convertibles until May 1, 2003, according to the SEC filing. It the convertibles are not refinanced by that date then the credit facility will expire on May 1, 2003.

The existing convertibles convert into 4.14 million shares at $34.72 per share.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.