Merge Healthcare tenders for any and all $252 million 11¾% notes

By Jennifer Chiou

New York, April 2 - Merge Healthcare Inc. announced the start of its cash tender offer for any and all of its $252 million of 11¾% senior secured notes due 2015.

According to a news release, the aim of the offer is to improve Merge's financial position by refinancing its debt at a lower interest rate.

The company is also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default, release all of the collateral securing the notes, shorten the minimum redemption notice period to three business days from 30 days and modify certain other related provisions.

The offer will end at midnight ET on April 29.

For each $1,000 principal amount, the company will pay $1,066.96, including a $30.00 consent payment for those who tender prior to 5 p.m. ET on April 15.

Merge will also pay accrued interest.

The offer is conditioned on tenders from holders of at least two-thirds of the aggregate principal amount of notes and sufficient financing.

Jefferies LLC is the dealer manager (888 708-5831 or 203 708-5831), i-Deal LLC is the information agent (888 593-9546 or 212 849-3880).

The Chicago-based company provides software for the storage and sharing of medical images.

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