Two investor-owned chains -- Province Healthcare Co. and Iasis Healthcare Corp. -- announced plans to tap into the bond market to repay debt and finance either acquisitions or hospital expansions. Province, Brentwood, Tenn., said it plans to sell $200 million of 10-year bonds to be used to repay bank debt, finance acquisitions and repurchase $62 million in convertible notes. Province, which owns or operates 20 hospitals, originally had sought to sell $150 million in bonds, but the interest rate of 7.5% persuaded the company to increase the size of the offering, said James Forbes, a healthcare investment banker with Merrill Lynch & Co. Merrill and Wachovia Securities are the lead managers on the sale. Iasis, Franklin, Tenn., said it will offer a private placement of up to $100 million in senior subordinated notes due in 2009. With the sale, the company's bankers have agreed to allow Iasis to boost its capital spending for fiscal 2004, which begins Oct. 1, to as much as $165 million, or more than double the $80 million previously allowed by the bankers. Iasis owns or operates 14 hospitals. -- by Vince Galloro
Province, Iasis to issue debt for refinancing, growth
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