Vanguard Health to redeem $628.8 million 10 3/8% notes due 2016

By Toni Weeks

San Diego, June 22 - Vanguard Health Systems, Inc. will use the net proceeds from its planned initial public offering of 25 million shares of common stock to redeem roughly $628.8 million of its 10 3/8% senior discount notes due Feb. 1, 2016, according to a company announcement.

The amount to be redeemed represents about 84.15% of the original $747,219,000 of notes issued in January 2011.

The share price for the stock offering will be $18.00 per share. The shares are expected to begin trading Wednesday on the New York Stock Exchange under the symbol "VHS."

The notes will be redeemed at a redemption price of 105% of the accreted value of the notes as of the redemption date.

U.S. Bank NA (800 934-6802), the redemption agent, will select the actual notes for redemption. Notes of $2,000 or less principal amount at maturity will not be redeemed in part.

The redemption is contingent on Vanguard's receipt of its stock proceeds.

Vanguard is a Nashville-based owner and operator of acute care hospitals and complementary facilities and services.

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