United Surgical Partners receives consents to amend 10% notes due 2011

By Laura Lutz

Des Moines, July 28 -United Surgical Partners International, Inc. announced that it received the consents it needs to amend its 10% senior subordinated notes due 2011 by the consent deadline of July 27.

In connection with United Surgical's previously announced consent solicitation and tender offer, holders of $148.8 million of the outstanding notes, or 99.2%, offered their consents.

The company will pay a consent fee of $30.00 per note.

With the necessary consents, the company executed a supplemental indenture to amend the note indenture to eliminate the restrictive covenants and some events of default, modify the covenant regarding mergers, shorten the minimum redemption notice period to five days from 30 and modify provisions regarding defeasance to eliminate some conditions.

The supplemental indenture will go into effect with the company's purchase of the notes in the course of its associated tender offer, which continues through midnight ET, Aug. 10.

United Surgical was offering $1,050 per $1,000 principal amount, plus accrued interest, for notes tendered by the consent deadline. Holders who tender after that point will receive that amount less the consent fee.

The total cost of the tender offer is expected to be about $160 million, assuming all notes are purchased.

United Surgical will finance the tender with the proceeds of a new $200 million credit facility. The offer is contingent upon its completion of the credit facility.

The tender started on July 14.

Bear, Stearns & Co. Inc. is the dealer manager solicitation agent (877 696-BEAR). D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 800 659-6590).

United Surgical is a Dallas-based owner and operator of surgical facilities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.