Health Management Associates receives consents to amend 1.5% convertibles

New York, Nov. 24 - Health Management Associates Inc. said it received the necessary consents to amend its 1.5% convertible senior subordinated notes due 2023.

The Naples, Fla., hospital operator is now able to pay cash for the notes if there is an event of default, allowing it to preserve the current accounting treatment for the convertibles. It noted that it is not in default and does not expect to be.

The note indenture previously prevented the company from paying cash on conversion of the notes if there is a default.

For other conversions, Health Management is able to pay cash, stock or a combination.

Holders who delivered consents will receive a fee of $2.50 per $1,000 principal amount.

The solicitation began on Nov. 10 and ended at 5 p.m. ET on Nov. 23.

The offer is subject to the company receiving consents from holders of a majority of the notes.

Global Bondholder Services Corp. is the information agent (866 389-1500). Merrill Lynch & Co. is the solicitation agent (888 654-8637).

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