Vanguard Health Systems, Nashville, said it has completed its sale of $225 million in new notes due in 2018, with an interest rate of 8%. These notes are being combined with the sale of $950 million in 8% notes due in 2018 offered in January, Vanguard said. Vanguard announced the more recent offering
last month.
The notes were sold to help finance Vanguard’s $1.27 billion acquisition of six-hospital Detroit Medical Center. Investor-owned Vanguard also has agreed to take on a pension liability that will cost $184 million over seven years. The acquisition of not-for-profit DMC is pending the review of the Michigan attorney general’s office and state and federal antitrust reviews. If the acquisition falls through, the funds raised by the notes will be used for general corporate purposes, including acquisitions, Vanguard said.
