Concentra tenders for 13% notes

New York, May 10 - Concentra Operating Corp. began a cash tender offer and consent solicitation for any and all of its $142.5 million series A and series B 13% senior subordinated notes due 2009.

The consent solicitation is to eliminate substantially all of the restrictive covenants in the note indenture and certain events of default.

Holders may not tender without delivering consents and may not deliver consents without tendering.

Holders who tender by the consent deadline of 5 p.m. ET on May 21 will receive $1,085.11 per $1,000 principal amount.

Holders who tender after that deadline but before the expiration date of midnight ET on June 7 will receive $1,065.11 per $1,000 principal amount.

In both cases Concentra will pay accrued interest up to but excluding the payment date.

The offer is subject to various conditions, including Concentra's receipt of tenders of at least a majority of the outstanding notes and completion of a concurrently announced offering of senior subordinated notes and amendment to the its senior credit agreement to increase the term loans. Part of the proceeds of these financings along with available cash will be used to fund the tender.

Concentra is an Addison, Texas, provider of services to contain healthcare and disability costs.

MacKenzie Partners Inc. is the information agent (212 929-5500). Credit Suisse First Boston LLC is dealer manager and solicitation agent (800 820-1653 or collect at 212 538-4807).

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