Select Medical buys $266.5 million 7 5/8% notes in oversubscribed offer

By Susanna Moon

Chicago, June 1 - Select Medical Corp. said it settled tenders for $266.5 million principal amount of its $611.5 million of 7 5/8% senior subordinated notes due 2015 on June 1.

The company said on May 24 that it received tenders for more than the maximum allowed in the offer for up to $266.5 million of the notes and that it expected to purchase those notes on a pro rata basis.

The offer began May 13 and ended at 11:59 p.m. ET on May 31. Withdrawal rights expired at 5 p.m. ET on May 23.

Select paid $1,027.92 for each $1,000 principal amount of notes plus accrued interest up to but excluding the payment date.

As of May 16, the company had already taken in tenders for $562,865,000, or 92.1%, of the notes. Select received tenders for $565,289,000, or 92.4%, of the notes by the offer deadline.

Select Medical announced several changes to the offer on May 17.

The company initially planned to purchase any and all notes tendered. The $266.5 million cap was added after the company downsized the term loan being used to fund the offer.

The company said it eliminated the consent solicitation for the notes and, in turn, removed the supplemental indenture condition.

Select Medical entered into $1.15 billion of new senior secured credit facilities comprising an $850 million seven-year term loan and a $300 million five-year revolving credit facility on June 1.

J.P. Morgan Securities LLC (800 245-8812 or call collect 212 270-3994) and Goldman Sachs & Co. (800 828-3182 or call collect 212 902-5128) were the dealer managers and solicitation agents. D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 800 628-8510) was the information agent.

Select Medical is a Mechanicsburg, Pa.-based operator of specialty hospitals and outpatient rehabilitation clinics.

© 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.