MedCath Corp., Charlotte, N.C., is set to offer 4.5 million shares of common stock, proceeds of which will pay off a portion of its 9.875% outstanding senior notes that are due in July 2012, according to O. Edwin French, MedCaths president and chief executive officer. This will strengthen our balance sheet and reduce our interest cost by $3.7 million a year, French said. The company will sell 1.7 million shares and certain stockholders will sell the remaining 2.8 million for $25 per share. In addition, underwriters will have the option to repurchase 675,000 shares at the public offering price. MedCath focuses on the diagnosis and treatment of cardiovascular disease. It owns interest in and operates 11 hospitals in eight states, and also manages the cardiovascular program at hospitals with other operators. -- by Jessica Zigmond
MedCath plans stock sales to reduce debt
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