Universal Hospital Services begins tender offer for toggle notes

By Angela McDaniels

Tacoma, Wash., July 24 - Universal Hospital Services, Inc. began a tender offer for its $405 million of 8½%/9¼% second-lien senior secured PIK toggle notes due 2015, according to a company news release.

The company is also soliciting consents to proposed amendments to the indenture governing the notes. The amendments would eliminate the right of the noteholders to benefit from substantially all restrictive covenants and some event-of-default provisions in the indenture.

Holders who tender their notes must consent to the proposed amendments, and holders who consent to the proposed amendments must tender their notes.

The tender offer will end at 12:01 a.m. ET on Aug. 21.

The company will pay $1,025 per $1,000 principal amount of notes. This includes a consent payment of $10 for each note tendered by 5 p.m. ET on Aug. 6, the consent deadline.

Holders will also receive accrued interest up to but excluding the applicable settlement date.

If the company chooses, the initial settlement date for the tender offer will be following both the consent deadline and the satisfaction or waiver of the tender offer's conditions. The final settlement date is expected to be on or prior to the business day following the expiration time.

The company plans to finance the tender offer with the proceeds from one or more capital markets transactions and, if necessary, cash on hand.

The tender offer is conditioned on the completion of one or more capital markets transactions, the execution and delivery of the supplemental indenture containing the amendments and its becoming effective and other customary conditions.

The dealer managers are Barclays Capital Inc. (800 438-3242 or 212 528-7581), Bank of America Merrill Lynch (888 292-0070 or 980 387-3907) or RBC Capital Markets (877 381-2099 or 212 618-7822). The information agent and tender agent is Global Bondholder Services Corp. (212 430-3774 for banks and brokers; others call 866 807-2200).

Universal Hospital Services provides medical equipment management and service solutions to the health-care industry and is based in Minneapolis.

© 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.