MQ Associates, MedQuest begin tender offers for 12¼% discount notes, 11 7/8% notes

By Angela McDaniels

Tacoma, Wash., Nov. 12 - MQ Associates, Inc. announced change-of-control tender offers for its $136 million outstanding principal amount at maturity of 12¼% senior discount notes due 2012 and subsidiary MedQuest, Inc.'s $180 million outstanding principal amount of 11 7/8% senior subordinated notes due 2012.

The payout for the 12¼% discount notes will be 101% of the accreted value up to but excluding the settlement date, which will be Dec. 13.

MedQuest will pay 101% of par for the 11 7/8% notes plus accrued interest up to but excluding the settlement date.

The tender offers expire at 8 a.m. ET on Dec. 12.

The change of control occurred on Nov. 9 when MQ Associates was acquired by Novant Health, Inc. for $45 million in cash. MQ Associates is also eligible for a contingent consideration of up to $35 million based on the company's adjusted EBITDA during the 2008 fiscal year.

D.F. King & Co., Inc., (800 290-6426 or 212 269-5550) is the information agent.

MQ Associates is a holding company that owns 100% of MedQuest's outstanding stock. MedQuest is an Alpharetta, Ga.-based operator of outpatient diagnostic imaging centers.

Novant Health is a not-for-profit integrated group of hospitals and physician clinics in North and South Carolina.

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