InSight once more prolongs 9 7/8% notes exchange offer

By Jennifer Chiou

New York, April 30 - InSight Health Services Holdings Corp. announced another extension of its offer to exchange shares of its common stock for up to $194.5 million principal amount of the 9 7/8% senior subordinated notes due 2011 issued by wholly owned subsidiary InSight Health Services Corp., this time to 5 p.m. ET on May 3.

The offer was set to expire at 11:59 p.m. ET on April 27, pushed back earlier from April 19.

As of April 27, $109.1 million of the notes had been tendered.

The company announced the offer on March 21 along with a vote solicitation on a prepackaged plan of reorganization.

At that time, holders of about 52% of the notes had already indicated an interest to tender in the exchange.

For each $1,000 principal amount of notes tendered, noteholders will receive 40 shares of the company's common stock after giving effect to a 4.70424-for-1 reverse stock split.

Completion of the exchange offer is conditioned upon InSight receiving tenders for not less than 95% of the notes, but the company said it may waive this condition.

Tendering noteholders must also consent to amend the notes indenture to terminate substantially all of the restrictive covenants.

According to an earlier release, the prepackaged plan of reorganization will attempt to restructure the company's debt on substantially the same terms as the out-of-court exchange offer, and InSight had said it only expects to file this prepackaged plan if the minimum tender conditions of the exchange offer are not satisfied or waived.

No exchange or consent fee will be paid in connection with the exchange offer and consent solicitation.

The dealer manager for the exchange offer is Lazard Capital Markets LLC. CapitalBridge (877 746-3583) is the solicitation and information agent.

InSight is a Lake Forest, Calif., provider of diagnostic imaging services.

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