Prospect Medical Holdings Closes $160 Million Senior Secured Notes Offering
July 29 2009 - 3:55PM
Business Wire
Prospect Medical Holdings, Inc. (NYSE Amex: PZZ)
(“Prospect” or the “Company”), which owns and operates five
hospitals and manages the medical care of HMO enrollees in southern
California, today announced the successful refinancing of all
amounts outstanding under its prior senior credit facility via the
closing of its previously announced $160 million senior secured
notes offering.
The new debt terms are 12¾% senior secured notes due 2014 (the
“Notes”) at an issue price of 92.335%. The Company used the net
proceeds from the sale of the Notes, together with cash on hand, to
repay all amounts outstanding under its prior credit facilities,
transaction costs, and to terminate its interest rate swap
agreements. Further details, terms and conditions of the Notes can
be found in the Company’s Form 8-K filed on July 29, 2009.
The notes have not been registered under the Securities Act of
1933, as amended (the “Securities Act”) and have been offered only
to “qualified institutional buyers” pursuant to the requirements of
Rule 144A under the Securities Act or to persons outside the United
States in accordance with Regulation S under the Securities Act.
Unless the notes are subsequently registered, they may not be
offered or sold in the United States except pursuant to an
exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and applicable
state securities laws. This press release does not constitute an
offer to sell or the solicitation of an offer to buy, nor will
there be any sale of the notes in any state in which an offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
ABOUT PROSPECT MEDICAL
HOLDINGS
Prospect operates five hospitals in the greater Los Angeles area
and manages the medical care of approximately 183,200 individuals
enrolled in HMO plans in Southern California, through a network of
approximately 13,900 specialist and primary care physicians.
This press release contains forward-looking statements.
Additional written or oral forward-looking statements may be made
by Prospect from time to time, in filings with the Securities and
Exchange Commission, or otherwise. Statements contained herein that
are not historical facts are forward-looking statements. Investors
are cautioned that forward-looking statements, including the
statements regarding anticipated or expected results, involve risks
and uncertainties which may affect the Company’s business and
prospects, including those outlined in Prospect’s Form 10-K
filed on December 29, 2008, as well as risks and uncertainties
arising from Prospect’s acquisition of Alta Hospitals System, LLC
and ProMed Health Services Company and its affiliates, and the debt
incurred by Prospect in connection with those acquisitions. Any
forward-looking statements contained in this press release
represent our estimates only as of the date hereof, or as of such
earlier dates as are indicated, and should not be relied upon as
representing our estimates as of any subsequent date. While we may
elect to update forward-looking statements at some point in the
future, we specifically disclaim any obligation to do so, even if
our estimates change.
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