Psychiatric Solutions receives tenders for majority of 10 5/8% notes

By Laura Lutz

Des Moines, May 22 - Psychiatric Solutions, Inc. said it received tenders and consents from holders of a majority of its 10 5/8% senior subordinated notes due 2013 by the consent deadline at 5 p.m. ET on May 21.

When the offer was announced on May 8, there was about $38.7 million principal amount of the notes outstanding.

The tender offer will expire at 11:59 p.m. ET on June 5.

For each $1,000 principal amount of notes tendered by the consent deadline, the payout is expected to be $1,101.24. That amount is based on 50 basis points over the yield to maturity of the 4 7/8% U.S. Treasury due May 31, 2008.

The payout includes a consent payment of $20 per $1,000 principal amount. Notes tendered after the early deadline will receive the same amount, less the consent payment.

Pricing was calculated at 2 p.m. ET on May 21.

Settlement depends on conditions including the receipt of tenders and consents from holders of at least a majority of the notes and the receipt of sufficient debt financing.

Citi (800 558-3745 or 212 723-6106) and Merrill Lynch & Co. (888 654-8637 or 212 449-4914) are the dealer managers. Global Bondholder Services Corp. (866 873-7700 or 212 430-3774) is the information agent.

Franklin, Tenn.-based PSI operates psychiatric inpatient facilities.

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