LifePoint tenders for 8¼% and 11½% notes, cancels asset-sale offer

By Wendy Van Sickle

Columbus, Ohio, Feb. 7 – LifePoint Health Inc. launched a cash tender offer for any and all of its outstanding $800 million 8¼% senior secured notes due 2023 (Cusips: 75915QAC2, U7586LAB3) and $350 million 11½% senior notes due 2024 (Cusips: 75915QAA6, 75915QAB4, U7586LAA5), according to a news release Friday.

The issuer also said it has canceled its asset-sale offer to purchase up to $91.5 million of the 2023 notes at par plus interest. That offer was announced on Feb. 3.

Under the new tender offer, LifePoint is offering a total consideration per $1,000 principal amount of $1,052.50 for the 2023 notes and $1,072.50 for the 2024 notes.

Each total consideration includes an early premium of $30 per $1,000 principal amount that will be paid only to holders who tender by the early deadline, 5 p.m. ET on Feb. 21.

The offer will expire at midnight ET on March 7.

In conjunction with the tender offer, the company is soliciting holders’ consents to some proposed amendments to the indentures governing the notes that require consents from holders of at least a majority of the principal amount of the notes of the applicable series.

The amendments would, among other things, eliminate or modify substantially all of the restrictive covenants, some reporting obligations, some events of default and related provisions.

The company is also proposing to release the collateral securing the 2023 notes, which release would require consents from holders of at least 66.67% of the notes of that series.

Holders may not tender their notes without delivering their consents, and holders may not deliver their consents without tendering their notes.

The deadline to withdraw tenders and consents is 5 p.m. ET on Feb. 21.

Early settlement is expected on Feb. 21.

The tender offers are conditioned on receipt of requisite consents for the relevant series and are also subject to a financing condition.

Barclays Capital Inc. (800 438-3242 or 212 528-7581), Citigroup Global Markets Inc. (800 588-3745 or 212 723-6106) and RBC Capital Markets (877 381-2099 or 212 618-7843) are the dealer managers.

D.F. King & Co., Inc. (212 269-5550, 866 521-4487 or lifepoint@dfking.com) the tender agent and information agent.

LifePoint is a Brentwood, Tenn.-based health care provider.

© 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.