Prime Healthcare Services – one of the nation’s leading health systems with 44 award-winning hospitals in 14 states – announced the closing and funding of $1.5 billion Senior Secured Notes due 2029.
This bond financing was strongly supported and resulted in an upsize in total bond offering from $750 million to $1.5 billion. And Prime used the net proceeds of the Notes Offering to redeem all of its outstanding 7.25% Senior Secured Notes due 2025, raise funds for the announced pending acquisitions, repaid outstanding indebtedness and paid related fees and expenses.
In connection with the financing, Moody’s recently raised Prime Healthcare Services rating outlook to Positive reflecting the expectation of good liquidity over the next 12-18 months and citing Prime’s scale and track record for being able to turn around underperforming or distressed hospital assets.
The bookrunners on the offering were Barclays, Mitsubishi UFJ Financial Group, Texas Capital Bank, KeyBanc Capital Markets, Royal Bank of Canada and Mizuho Financial Group.
KEY QUOTES:
“The strength of Prime Healthcare’s strategic vision and financial model is demonstrated by the successful completion of this financing. This transaction positions Prime to continue expanding its integration strategies, pursue acquisitions, and ensure future growth.”
– Steve Aleman, Chief Financial Officer of Prime Healthcare
“Prime has saved and transformed over 40 hospitals across the country, and our strong operations and financial position enable us to invest and improve facilities that align with our mission to turn around hospitals, provide clinically excellent care, and expand access for all.”
– Sunny Bhatia, MD, President and Chief Medical Officer of Prime Healthcare
