Prime Healthcare Services, Inc. Successfully Completes $50 Million Tender Offer
ONTARIO, Calif.--(BUSINESS WIRE)--Sep 12, 2022--
On September 2, 2022, Prime Healthcare Services, Inc. completed the repurchase of $50,980,000 aggregate principal amount of Prime’s outstanding 7.250% Senior Secured Notes due November 2025 (the “Notes”). On the Settlement Date, the Company paid all holders of Notes who validly tendered and did not withdraw their Notes on or prior to the Expiration Time, and whose Notes were accepted for purchase, the Total Consideration of $920.00 per $1,000 principal amount of Notes (plus accrued and unpaid interest). Prime Healthcare previously announced the cash tender offer on August 4, 2022, which expired on August 31, 2022.
Prime Healthcare is the largest physician-founded and led health system in the nation, recognized for award winning care and forwarding health equity by transforming hospitals into valued community assets.
“Due to strong cash reserves, Prime was able to leverage a unique market opportunity to retire outstanding debt at a discount while still maintaining robust liquidity to fund future growth,” said Steve Aleman, Prime Healthcare’s Chief Financial Officer. “Prime’s ability to complete this transaction is a testament to the strength of Prime’s leadership, vision, and strategic initiatives that have reinforced the company’s operations and financial position.”
In addition, on September 1, 2022, Prime Healthcare Services, Inc. completed the repurchase of nine general acute care hospitals and two related medical office buildings from Medical Properties Trust, Inc. for approximately $360 million. Prime now owns all operations and the real estate for the majority of its 45 hospitals.
“The value created from these two transactions reflects Prime’s solid business model and the company’s ability to prudently execute transformative initiatives,” said Aleman.
About Prime Healthcare
Prime Healthcare is headquartered in Ontario, California and operates 45 hospitals and has more than 300 outpatient locations in 14 states. Prime Healthcare provides more than 2.6 million patient visits annually. It is one of the nation’s leading health systems with nearly 50,000 employees and physicians. Fourteen of the Prime Healthcare hospitals are members of the Prime Healthcare Foundation, a 501(c)(3) not-for-profit public charity.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20220912005951/en/
Elizabeth Nikels / 909-235-4305enikels@primehealthcare.com
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES HEALTH HOSPITALS PRACTICE MANAGEMENT INSURANCE HEALTH INSURANCE FINANCE
SOURCE: Prime Healthcare Services, Inc.
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