Province Healthcare sets pricing in tender for 7½% notes

New York, April 13 - Province Healthcare Co. said it has set pricing in its tender offer for its $200 million of 7½% senior subordinated notes due 2013.

Holders who tendered by the consent deadline will receive $1,120.43 per $1,000 principal amount, including the consent payment of $20.00 per $1,000. Province will also pay accrued interest up to but excluding the date of payment.

Province Healthcare said on April 1 that it had received the necessary consents to amend the notes.

Province said it will enter into a supplemental indenture incorporating the changes but it will not become effective until it buys the notes.

Province announced it had begun a tender for the notes on March 18. The Brentwood, Tenn., hospital operator said it was making the offer as part of its merger with LifePoint Hospitals Inc.

The consent deadline for the offer is midnight ET on March 31, and the tender ends at midnight ET on April 15.

For each $1,000 principal amount of the notes, Province will pay a price based on a fixed spread of 50 basis points over the yield on the price determination date of the 2.625% U.S. Treasury note due May 15, 2008 plus accrued and unpaid interest up to but excluding the date of payment for the notes, minus the consent payment.

Pricing was fixed at 2 p.m. ET on April 12.

Holders who deliver consents by the consent deadline will also receive a consent payment of $20 per $1,000 principal amount.

The consent solicitation is to eliminate substantially all of the restrictive covenants and to significantly amend the merger covenant and certain events of default and related provisions in the note indenture.

Notes may not be tendered without consents or vice versa.

The tender is subject to conditions including the satisfaction or waiver of all requirements for the merger to go ahead and the receipt of consents from holders of a majority of the notes.

Citigroup Global Markets Inc. is the dealer manager and solicitation agent (contact Liability Management Group at 800 558-3745 or call collect 212 723-6106). Global Bondholder Services Corp. is the information agent (866 804-2200 or call collect 212 430-3774).

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