Vanguard Health subsidiaries wrap tender for 9% notes, 11¼% notes

By Jennifer Chiou

New York, Feb. 12 - Vanguard Health Systems, Inc. announced that its subsidiaries completed their tender offer for their 9% senior subordinated notes due 2014 and 11¼% senior discount notes due 2015.

No further notes were tendered after the early deadline in the offer that expired at midnight ET on Feb. 11.

The 9% notes were co-issued by Vanguard Health Holding Co. II, LLC and Vanguard Holding Co. II, Inc., and the 11¼% notes were co-issued by Vanguard Health Holding Co. I, LLC and Vanguard Holding Co. I, Inc.

Prior to Feb. 1, the companies accepted tenders for $554,355,000, or 93.45%, of the 9% notes and $211.95 million principal amount at maturity of the 11¼% notes.

As already reported, remaining notes will be redeemed on March 5. About $20.6 million of the 9% notes and $4.1 million of the 11¼% notes are outstanding, the companies previously said.

The redemption price is 104.5 for the 9% notes and 105.625 for the 11¼% notes. Holders will also receive accrued interest up to but excluding the redemption date.

The offer began on Jan. 14.

The purchase prices in the tender offers were $1,047.50 for each $1,000 principal amount of 9% notes and $1,060.00 for each $1,000 principal amount at maturity of the 11¼% notes. These payouts included a consent payment of $30.00 for each note tendered by the consent deadline, which was 5 p.m. ET on Jan. 29. Holders also received accrued interest.

The companies had received tenders for $528,855,000 principal amount, or 91.97%, of the 9% notes and $201,847,000 principal amount at maturity, or 93.45%, of the 11¼% notes as of 5 p.m. ET on Jan. 28.

Bank of America Merrill Lynch (888 292-0070 or call collect 980 388-9217) was the dealer manager and solicitation agent for the tender offers, and Global Bondholder Services Corp. (866 470-4500 or call collect 212 430-3774) was the information agent. Questions about the notice of redemption were to be directed to trustee U.S. Bank NA (800 934-6802).

Vanguard is a Nashville-based owner and operator of acute care hospitals and complementary facilities and services.

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