Health Management starts exchange for 0% convertibles due 2022

New York, Nov. 30 - Health Management Associates, Inc. said it has begun an exchange offer for its zero-coupon convertible senior subordinated notes due 2022.

The Naples, Fla., operator of non-urban hospitals is offering new convertibles with identical terms except that on conversion the company will pay cash up to the accreted value of the notes the remainder in either cash or stock.

An additional put on Jan. 28, 2006 is being added to the new notes.

All puts will be payable in cash instead of cash, stock or a combination.

The new notes will also have additional anti-dilution protection for cash dividends until Jan. 28, 2007 and contingent interest will be at 0.125%.

The exchange runs through midnight ET on Dec. 28.

Global Bondholder Services Corp. is the information agent (866 389-1500).

No fee is payable.

Health Management Associates Inc. previously conducted a consent solicitation to amend its 1.5% convertible senior subordinated notes due 2023 allowing it to pay cash for the notes if there is an event of default so that it can preserve the current accounting treatment for the convertibles.

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