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Merge calls 11¾% senior secured notes remaining after tender offer
New York, April 23 - Merge Healthcare Inc. said it will redeem all $1,614,000 of its remaining 11¾% senior secured notes due 2015 on May 1.
The company will pay $1,058.75 per $1,000 principal amount plus accrued interest.
The debt has been left outstanding after the company's tender offer.
Merge announced on April 16 that holders had tendered 99.36% of its $252 million of 11¾% senior secured notes due 2015 by the early tender deadline of 5 p.m. ET on April 15.
As a result, the company executed a supplemental indenture 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 and shorten the minimum redemption notice period to three business days from 30 days, according to a news release.
The changes will become operative when the tendered notes are purchased, which happened on Tuesday.
The company paid $1,066.96 for each $1,000 principal amount, including a $30.00 consent payment, for notes tendered by the early tender deadline.
The company also paid accrued interest.
The tender offer will continue to run until midnight ET on April 29. The offer began on April 2.
Those who tender after the early deadline will receive the total payment less the consent premium.
The offer had been conditioned on tenders from holders of at least two-thirds of the total principal amount of notes and sufficient financing.
Merge Healthcare is conducting the offer to improve its financial position by refinancing its debt at a lower interest rate, according to a previous press release.
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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