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S&P: Province Healthcare unaffected
Standard & Poor's said Monday that its credit ratings and outlook for Province Healthcare Co. (B+/stable/--) would not be affected by LifePoint Hospitals Inc.'s recent acquisition agreement to purchase the company.
The $1.7 billion proposed transaction, expected to be completed by mid-2005, will be financed with about $565 million in cash, through the issuance of about 17 million shares of LifePoint common stock, and by the assumption or refinancing of Province's debt.
S&P said that while the combined entity is expected to have significantly greater debt obligations, the new company's credit profile will not be substantially changed. While the combined entity could benefit from operating scale and cost savings, the financial risk associated with the transaction is likely to be the overriding credit consideration and is reflective of the current rating and outlook.
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