Iasis Healthcare tenders for 8½%, 13% notes

New York, May 6 - Iasis Healthcare Corp. said it has begun a cash tender offer and consent solicitation for any and all of its $230 million principal amount of 13% senior subordinated notes due 2009 and its $100 million principal amount of 8½% senior subordinated notes due 2009.

The company said the purchase price for the notes will be based on a fixed spread of 50 basis points over the yield on the pricing date of the 1 7/8% U.S. Treasury Note due Sept. 30, 2004 for the 13% notes and the 4 5/8% U.S. Treasury Note due May 15, 2006 for the 8½% notes. The total calculated will include a $30.00 per $1,000 principal amount consent payment.

The price will be fixed on June 1 unless the offer is extended in which case it will be the third business day before expiration.

Iasis will also pay accrued interest up to but not including the payment date.

Iasis is also soliciting consents to amend the note indenture. Notes may not be tendered without delivering consents or consents delivered without tendering.

The consent deadline is 5 p.m. ET on May 19. Holders will only receive the consent payment if they tender before this time.

The tender expires at midnight ET on June 3.

The Franklin, Tenn. hospital operator said the offer is subject to various conditions including the receipt of financing and the refinancing of its credit facility.

The information agent is Global Bondholder Services Corp. (866 937-2200 or collect at 212 430-3774). Banc of America Securities LLC is the dealer manager and solicitation agent (contact High Yield Special Products at 888 292-0070 or collect at 704 388-4813).

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