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Psychiatric Solutions wraps tender for 10 5/8% notes
By Jennifer Chiou
New York, June 1 - Psychiatric Solutions, Inc. completed its cash tender offer for its 10 5/8% senior subordinated notes due 2013 using borrowings under a term loan and proceeds from a notes offering.
The company previously said it received tenders and consents from holders of a majority of the notes by the consent deadline at 5 p.m. ET on May 21.
Psychiatric Solutions also said it completed the acquisition of Horizon Health Corp. in a transaction valued at $426 million.
The company added that it financed the transaction and the tender offer with an additional $225 million of borrowings under the term loan portion of its senior secured credit facilities, as well as the net proceeds of an offering of $250 million of senior subordinated notes due 2015.
When the offer was announced on May 8, there was about $38.7 million principal amount of the notes outstanding.
The tender offer had been set to expire at 11:59 p.m. ET on June 5.
For each $1,000 principal amount of notes tendered by the consent deadline, the payout was $1,101.24. That amount was based on 50 basis points over the yield to maturity of the 4 7/8% U.S. Treasury due May 31, 2008.
The payout included a consent payment of $20.00 per $1,000 principal amount. Notes tendered after the consent deadline received the same amount, less the consent payment.
Pricing was calculated at 2 p.m. ET on May 21.
Settlement depended on conditions, including the receipt of tenders and consents from holders of at least a majority of the notes and the receipt of sufficient debt financing.
Citi (800 558-3745 or 212 723-6106) and Merrill Lynch & Co. (888 654-8637 or 212 449-4914) were the dealer managers. Global Bondholder Services Corp. (866 873-7700 or 212 430-3774) was the information agent.
Franklin, Tenn.-based Psychiatric Solutions operates psychiatric inpatient facilities.
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