Vanguard Health Systems, Nashville, filed a prospectus with the U.S. Securities and Exchange Commission for Vanguard's initial public offering of stock. The company plans to sell stock worth $600 million in the IPO, with the shares to be traded under the symbol “VHS” on the New York Stock Exchange, according to the filing.
Vanguard Health plans to sell $600 million of stock in IPO
Vanguard intends to use the proceeds to pay off senior discount notes that are due in February 2016, according to the filing. The prospectus does not specify what price range it expects for the initial offering of shares or how many shares will be sold. The filing also does not state the specific ownership interests of its three main shareholding groups after the sale of the public shares, but does state that after the IPO, Vanguard still will be considered a “controlled company” under New York Stock Exchange rules because the three groups will still control a majority of the voting power of the company. Private-equity firm Blackstone Group owns a 66.1% interest in the company. Morgan Stanley Capital Partners, which was the company's original equity investor when it was founded in 1997, owns an 18% stake. The company's management team owns 15.9% collectively, including 7.4% by Chairman and CEO Charlie Martin.
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