Ardent Health again extends tender for 10% notes

New York, May 16 - Ardent Health Services LLC said it has again extended its tender offer for its $225 million of 10% senior subordinated notes due 2013.

The expiration date is now 5 p.m. ET on June 13 instead of 5 p.m. ET on May 30, itself pushed back from 5 p.m. ET on May 13.

Ardent said on April 28 that it had received the necessary consents to amend the indenture for the notes.

By the consent deadline of 5 p.m. ET on April 28, holders had tendered $224.97 million or 99.99% of the notes.

Ardent said it has executed a supplemental indenture incorporating the changes.

Ardent announced the cash tender offer and consent solicitation on April 15.

For each $1,000 principal amount, the Nashville, Tenn., health care company is offering the present value on the initial payment date of the $1,050 redemption price on the first call date of Aug. 15, 2008, discounted using 50 basis points over the yield on the 3¼% U.S. Treasury note due Aug. 15, 2008.

The total includes a consent payment of $30 per $1,000 that will only be paid to holders who tender and deliver consents by the consent deadline.

Pricing will be fixed at 2 p.m. ET 10 business days before the expiration.

The consent solicitation is to amend the note indenture to eliminate substantially all the restrictive covenants and certain events of default.

Holders who tender must deliver consents and vice versa.

The offer is subject to conditions including completion of the sale of Ardent's behavioral health division to Psychiatric Solutions, Inc., amendment of the company's credit facility to permit the tender offer and consent solicitation, the receipt of consents from holders of a majority of the notes and other general conditions.

Psychiatric Solutions has agreed to cause the company to redeem any notes still outstanding after the tender. Ardent said it currently has the right to call all of the notes for redemption under the terms of the indenture.

Global Bondholder Services Corp. is the depositary and information agent (call collect 212 430-3774 or 866 389-1500). Banc of America Securities LLC is the dealer manager and solicitation agent (contact High Yield Special Products collect at 704 388-9217 or 888 292-0070).

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