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MedCath retires $102 million 9 7/8% notes with proceeds of loan
By Susanna Moon
Chicago, Nov. 14 - MedCath Corp. said it will repurchase all of its $102 million outstanding 9 7/8% senior notes using proceeds of a $75 million term loan and cash on hand.
The company also will pay the notes' repurchase premium of about $5 million.
Initial pricing for the loan, at MedCath's option, is either Libor plus 300 basis points or Bank of America's base rate plus 200 bps, according to the company's fourth-quarter earnings release.
"The facility allows MedCath to significantly reduce borrowing costs, fund previously announced growth capital requirements and selectively pursue hospital acquisitions or limited share repurchases," Jeff Hinton, MedCath's chief financial officer, said in the release.
MedCath is a Charlotte, N.C.-based health care provider focused on high-acuity services.
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