Valitás Health: $100 million of note proceeds to help fund acquisition

By Lisa Kerner

Charlotte, N.C., March 3 - Valitás Health Services, Inc. will use gross proceeds of $100 million from the sale of senior subordinated notes to fund a portion of its merger with American Service Group, Inc., according to a form 8-K filed with the Securities and Exchange Commission.

Funds managed by GSO Capital Partners LP and its affiliates, along with senior lenders Barclays Bank PLC and Bank of America, NA, provided customary mezzanine financing commitment letters for the debt financing.

Valitás will acquire America Service Group for $26 per share, or roughly $250 million.

St. Louis-based Valitás and Brentwood, Tenn.-based America Service Group are providers of health care services to the incarcerated population.

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