Prime Healthcare Services, Inc. Announces Closing of $700 Million Senior Secured Notes Offering

(Ontario, CA) – Prime Healthcare Services, Inc. (Prime), an award-winning national health system with 31 hospitals, announced that it has closed its public offering of $700 million senior secured credit notes - above the initial offering amount of $610 million due to overwhelming demand by investors. 70% of the final order book was allocated to 21 investors.

Prime Healthcare stands apart from other health systems by its unique ability to save and transform hospitals and deliver award winning, value-based care for the communities they serve.

The notes priced at a coupon rate of 7.25%, which is at the tight end of the issuance range, again signaling the strength of the offering and demand. The net proceeds from the offering will be used to refinance secured debt and for general corporate purposes, including the expansion of integration strategies, acquisitions, and working capital. The notes have a maturity date of November 1, 2025 with a two-year call provision.

Bookrunners on the offering were Barclays, BBVA and KeyBanc Capital Markets. “We are very pleased by the institutional investor response and demand for this offering leading to the ability to not only increase the size of the offering from $610 million to $700 million, but also price at the tight end of price guidance at 7.25%,” said David Barcus of BBVA.

Concurrent with the $700 bond offering, Prime also has refinanced its existing asset based revolving credit facility with a new $450 million facility that will be used for working capital.

"This financing affirms the strength of Prime’s model, platform and strategic vision,” said Steve Aleman, Prime Healthcare’s Chief Financial Officer. “We are extremely pleased by the investor response and demand leading to the ability to not only complete but expand this offering.”

“Our hospitals and teams remain dedicated to ensuring access to quality, value-based care that is essential as we expand our mission of delivering and improving healthcare across the nation,” said Sunny Bhatia, MD, CEO of Prime Healthcare Region I and Corporate Chief Medical Officer. “We are grateful to everyone involved in this important transaction.”