Iasis Healthcare holders deliver consents needed to amend 8¾% notes

By Susanna Moon

Chicago, May 2 - Iasis Healthcare LLC said investors had tendered $441,153,000 principal amount, or 92.87%, of the $475 million of 8¾% senior subordinated notes due 2014 it issued with Iasis Capital Corp. as of the consent deadline at 5 p.m. ET on April 29.

Iasis executed a supplemental indenture after securing consents from holders of more than two-thirds of the outstanding notes, according to a company press release.

The company solicited consents to amend the notes to eliminate substantially all of the restrictive covenants, the subordination provisions and some events of default. Some of the amendments required consents from the holders of at least two-thirds of the outstanding notes, and the remainder required consents from the holders of at least a majority of the outstanding notes.

The total payment will be $1,021.25 per $1,000 principal amount for notes tendered by the consent deadline plus accrued interest up to but excluding the payment date, which is expected to be May 3. This includes a consent payment of $10.00 per note.

The tender offer will continue until 8 a.m. ET on May 16. The offer began April 18.

Holders who tender their notes after the consent date will receive $1,011.25 per $1,000 principal amount of notes plus accrued interest up to but excluding the payment date, which is expected to be May 16.

The tender offer is subject to the receipt of enough funds on terms that are acceptable to the issuers and enough consents. It is also subject to Iasis amending and restating its existing credit facility to allow it to pay for the notes or terminating its existing credit facility and entering into a new credit facility.

Iasis upsized its seven-year term loan B (Ba3/B) on April 27 to $1.025 billion from $935 million and firmed pricing at Libor plus 375 basis points, the tight end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Iasis Healthcare LLC and Iasis Healthcare Corp. also priced a downsized $850 million issue of 8 3/8% eight-year senior notes at 99.277 on April 27 to yield 8½%.

The dealer manager and solicitation agent for the tender offer is Merrill Lynch (888 292-0070 or 980 388-9217). The information agent is Global Bondholder Services Corp. (866 736-2200 or 212 430-3774).

Iasis owns and operates medium-sized acute care hospitals. It is based in Franklin, Tenn.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.