Owensboro Medical, Ky., gets tenders for $13.85 million bonds in offer

By Angela McDaniels

Tacoma, Wash., July 21 - Owensboro Medical Health System, Inc. said it received and accepted $13.85 million of bonds for purchase in its tender offer for a portion of the series 2001B and 2001C health system variable-rate revenue bonds issued for it by the City of Owensboro, Ky.

The hospital chain, formerly known as Owensboro Mercy Health System, Inc., offered to purchase up to $16.7 million of the $51.7 million series 2001B B variable-rate revenue bonds auction-rate securities due Aug. 1, 2027 and $55.9 million series 2001C variable-rate revenue bonds auction-rate securities due Aug. 1, 2030.

The offer began July 13 and expired at noon ET on July 20.

Holders will receive $960 per $1,000 principal amount of bonds plus accrued interest up to but excluding the settlement date, which is July 23.

The price was determined through a modified Dutch auction. Holders who tendered had to specify a bid of between $900 and $980 for each $1,000 principal amount of the bonds.

Owensboro Medical is required to retire some of the bonds by July 31 under an agreement with the Internal Revenue Service.

The dealer manager was Merrill Lynch, Pierce, Fenner & Smith Inc. (contact Darrel Flanel at 212 449-0615 or darrel_flanel@ml.com, or Stephen Claiborn at 713 287-2312 or stephen_claiborn@ml.com). The depositary was Wells Fargo Bank, NA (contact Gregory S. Clarke at 312 845-4385 or gregory.s.clarke@wellsfargo.com, or Veronica Salazar at 312 845-9781 or veronica.salazar@wellsfargo.com).

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