MQ Associates begins tender offer, consent solicitation for 12¼% discount notes

By Angela McDaniels

Tacoma, Wash., Dec. 31 - MQ Associates, Inc. said it is offering to purchase for cash any and all of its outstanding 12¼% senior discount notes due 2012.

The company is also soliciting consents to amend the note indenture to eliminate substantially all of the material restrictive covenants and some events of default. Noteholders who tender must deliver consents and vice versa.

The company will pay 107.081% of the accreted value of each note as of the payment date. Noteholders who tender by 5 p.m. ET on Jan. 14 will also receive a consent payment of $28.12 for each $1,000 principal amount at maturity of notes.

The tender offer expires at midnight ET on Jan. 29.

Holders of 58.4% of the outstanding notes have agreed to tender their notes and deliver consents, according to a company news release.

The tender offer is conditioned upon the receipt of consents from holders of a majority of the notes.

Jefferies & Co., Inc. is (888 708-5831) dealer manager and solicitation agent, and D.F. King & Co., Inc. (212 269-5550 or 800 859-8509) is information agent.

The company held a change-of-control tender offer for the notes that expired on Dec. 12 in connection with its acquisition by Novant Health, Inc. on Nov. 9. Noteholders tendered $835,000, or 0.61%, of the notes and received 101% of the accreted value.

MQ Associates is the holding company for MedQuest, Inc., an Alpharetta, Ga.-based operator of outpatient diagnostic imaging centers.

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