Health Management to redeem convertibles due 2020

New York, July 15 - Health Management Associates, Inc. said it will redeem its convertible senior subordinated debentures due 2020 on August 16.

The Naples, Fla. community hospital operator will pay $635.88 per $1,000 principal amount at maturity of the securities in cash.

Holders will be able to convert the debentures into stock at the rate of 29.5623 class A shares per $1,000 principal amount at maturity. Health Management stock closed at $18.66 on Monday.

Silicon Graphics extends exchange, cuts minimum

New York, July 15 - Silicon Graphics, Inc. said it extended its exchange offer for its 5¼% senior convertible notes due 2004 to midnight ET on August 1 and cut to 85% from 90% the minimum principal amount of the securities that must be tendered for the offer to be completed.

The offer had previously been scheduled to expire at midnight ET on July 14.

As of the previous deadline, $163.7 million or about 71% of the $230 million outstanding convertibles had been tendered, up from $111.4 million on June 30, when the exchange was previously extended. Of the amount tendered, $105.4 million is for 11¾% senior notes and $58.3 million for 6½% senior convertible notes.

As previously announced, the Mountain View, Calif. company is offering to exchange either new 6½% senior convertible notes due 2009 or new 11¾% senior notes due 2009 for the existing 5¼% convertibles, at the option of the tendering noteholder.

The new convertibles will convert at $1.85 per share and Silicon Graphics will issue up to $78 million of them.

Silicon Graphics has agreed to meet financial performance and debt reduction conditions which, if not satisfied, will result in an increase in the interest rate payable on the 11¾% notes and a reduction in the conversion price of the 6½% convertible notes for the fiscal quarter in which the conditions have not been satisfied.

The company has also agreed to use the proceeds of certain asset sales to reduce its debt, and to provide for exchanging holders to nominate two persons to serve on its board of directors.

Silicon Graphics revised the initial terms of its offer following discussions with noteholders.

The new securities will be issued with a principal amount equal to the existing convertibles.

When first announced, the company said the exchange offer is intended to offer holders of the existing notes an increase in yield and, for holders who choose new convertibles, a decrease in the conversion price, in return for an extension of the maturity.

Silicon Graphics said Highfields Capital, which holds $68 million of the existing convertibles, has agreed to tender and not to withdraw its notes in exchange for the 11¾% notes.

DaVita says most convertibles exchanged for stock ahead of redemption

New York, July 15 - DaVita Inc. said holders of $124.7 million of its 5 5/8% convertible subordinated notes converted the securities into 4,868,352 shares of common stock ahead of the redemption.

The Torrance, Calif. dialysis services company said $272,000 principal amount were redeemed for $276,599 in cash including accrued interest.

The notes were redeemed on July 15.

Range Resources to redeem 8.75% convertibles with junk bond offering

New York, July 15 - Range Resources Corp. said it will redeem its 8.75% senior subordinated convertible notes due 2007 with proceeds from an offering of $100 million of senior subordinated notes due 2013.

The Fort Worth, Texas oil and gas company said it expects to price the new junk bonds this week.

Proceeds will also be used to repay some other debt.

Foster Wheeler plans exchange offer for convertibles

New York, July 15 - Foster Wheeler Ltd. said it is plans to make an exchange offer for its 6.5% convertible subordinated notes due 2007.

The Clinton, N.J. company said it expects to offer preferred stock of a subsidiary for the securities, according to a registration statement filed with the Securities and Exchange Commission for a separate exchange offer for its existing trust preferreds.

The proposed exchange would be part of a series of transactions to reduce its leverage.

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