Manor Care offers to exchange up to $100 million 2.125% convertible notes for new notes

By Ted A. Knutson

Washington, Nov. 3 - Manor Care, Inc. is offering to exchange up to $100 million in 2.125% contingent convertible senior notes due 2023 for up to $100 million in new notes, the firm announced Wednesday in a filing with the Securities and Exchange Commission.

Bondholders who make the switch will receive notes with "substantially similar terms" and an exchange fee of 25 basis points.

The offer expires midnight ET on Dec. 1.

The company said because of accounting changes it is offering to exchange old notes for new with a net share settlement mechanism in which it will pay cash for the principal amount of any notes converted and stock for any remaining value.

If holders of new notes exercise their right to require Manor Care to repurchase the notes on certain future dates and upon the occurrence of certain events, the company will be obligated to pay for them in cash.

For more information, call Global Bondholder Services Corp. at 212 430-3774 (banks and brokerage firms) or 866 470-4500 (all others).

Toledo, Ohio-based Manor Care operates long-term care centers and other medical facilities.

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