Prime Healthcare Services, Inc. Announces Closing of $225 Million Add-on Senior Secured Notes Offering
Posted on May 3, 2021
Financing reflects confidence in Prime Healthcare’s long-term sustainability
(ONTARIO, Calif – May 3, 2021)Prime Healthcare Services, Inc.(Prime), an award-winning national health
system with 31 hospitals, announced that it has closed its public offering
of $225 million Add-on senior secured credit notes - above the initial
offering amount of $150 million due to overwhelming demand by investors.
Prime Healthcare, one of the nation’s leading health systems with
46 hospitals in 14 states, 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 Add-on notes priced 106.25 at a yield of 5.22% 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 Nov. 1, 2025 with a two-year call provision.
"This financing affirms the strength of Prime’s platform, strategic
vision and quality model. The model endured even through the pandemic
with the historic acquisition of St. Francis Medical Center in Lynwood,
California,” 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 1 and Corporate Chief Medical Officer.
“We are grateful to everyone involved in this important transaction.”
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