Vanguard Health Systems, Nashville, said it has completed its sale of $950 million in eight-year senior notes with an interest rate of 8%. The proceeds will be used to retire debt with higher interest rates and also to partially fund a $300 million distribution to its investors in the form of repurchasing securities from those investors. So far, bondholders have agreed to tender $528.9 million of the $575 million of the company’s notes due in 2014, which carry a 9% interest rate, and $201.8 million of the $216 million in notes due in 2015, which carry an 11.25% interest rate. Investors have until Feb. 11 to tender their bonds. Vanguard’s investors are led by its majority owner, the Blackstone Group, which recapitalized the company in 2004.
Late News: Vanguard will retire some debt with cash from sale of notes
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