LifePoint Hospitals, Brentwood, Tenn., said it is offering $400 million in new senior unsecured notes due in 2020.
LifePoint to offer $400 million in senior notes
More than half of the net proceeds will be used to repay $249.2 million on a term loan due in 2012, according to LifePoint. As of June 30, there was $692.9 million outstanding on the term loan, according to a securities filing. The company amended the credit agreement in February to push back the due date from April 2012 to April 2015 on $443.7 million of the term loan, but that move was contingent on LifePoint refinancing the remaining amount. The note sale will enable that delay in the debt due date to occur.
The remaining proceeds will be used for general corporate purposes, including the $150 million share repurchase plan that the company announced last week.
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