Merge Healthcare gets consents needed to issue additional 11¾% notes

By Angela McDaniels

Tacoma, Wash., June 16 - Merge Healthcare Inc. received enough consents to amend the indenture governing its $200 million of 11¾% senior secured notes due 2015, according to a company news release.

A consent solicitation for the notes began June 7 and expired at 5 p.m. ET on June 14.

As of the expiration time, consents had been received for $152.8 million principal amount of the notes.

Merge Healthcare will pay a consent fee of $10 per $1,000 principal amount of notes.

The amendments will allow the company to issue up to $52 million of additional 11¾% notes. The proceeds will be used to repurchase all of the company's outstanding series A preferred stock, which has an accrued liquidation preference of about $49 million, and to pay consent fees.

None of the proceeds will be used to finance the company's proposed acquisition of Ophthalmic Imaging Systems, Inc., which is expected to occur before July. The company will exchange its common stock for all of the outstanding common stock of Ophthalmic Imaging, and its out-of-pocket expenses will be paid from its available cash.

The company's obligation to make the consent payment is contingent, among other things, on the consummation of the add-on. The consent payment will be made once the conditions are satisfied.

Merge Healthcare provides enterprise imaging solutions for radiology, cardiology and orthopaedics; a suite of products for clinical trials; and software for financial and pre-surgical management. It is based in Chicago.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.