Vanguard Health Systems, Nashville, took in nearly $45 million more in proceeds from two note issues than it expected when it announced the offerings yesterday, according to a news release.
Vanguard sells $795 million in debt issues
Vanguard said its senior discount note offering took in gross proceeds of $444.7 million. The notes will not pay interest, but will be worth $747.2 million when they mature in February 2016, or a rate of 10.375% per year, compounded semi-annually. The company announced the issue was to be for $375 million.
Two of Vanguard's subsidiaries sold $350 million in senior notes due in February 2019, or $25 million less than it announced originally. The notes carry an interest rate of 7.75%.
The proceeds of the senior notes are intended for general corporate purposes, such as acquisitions and the cost of the note issues. The proceeds of the senior discount notes are intended to pay a dividend to shareholders. Vanguard made a $300 million payment to shareholders last year, the first since the company was founded in 1997.
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