Universal Hospital starts tender offer for 10 1/8% notes

By Jennifer Chiou

New York, April 30 - Universal Hospital Services Inc. said it began a tender offer for any and all of its $260 million of 10 1/8% senior notes due 2011.

The Edina, Minn.-based medical equipment lifecycle services company is also soliciting consents from noteholders to eliminate substantially all of the restrictive covenants, certain affirmative covenants and certain events of default contained in the indenture.

The consent deadline is 5 p.m. ET on May 11. The tender offer ends at 5 p.m. ET on May 29. Plans for the offer were announced on April 16.

For each $1,000 of notes, the company said it will pay the present value of $1,050.63, the amount payable on the notes' first call date on Nov. 1, 2007, discounted using the 4¼% Treasury due Oct. 31, 2007 and 50 basis points. Those who tender by the consent deadline will receive a consent payment of $30.00 per $1,000 principal amount.

Universal Hospital is seeking consents from holders of a majority of the notes.

As already announced, the solicitation and offer are linked to Universal Hospital's definitive agreement to be acquired by Bear Stearns Merchant Banking, the private equity affiliate of the Bear Stearns Cos., Inc., for about $712 million. The transaction is slated to close during the second quarter.

The company is currently owned by management and by private equity firms J. W. Childs Associates and the Halifax Group.

Global Bondholder Services Corp. is the information agent (866 470-3700). Merrill Lynch & Co. is the dealer manager (call collect 212 449-4914 or toll free 888 654-8637).

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