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.”