Iasis Healthcare, Franklin, Tenn., announced plans to issue up to $2.17 billion in new debt that will refinance its existing debt and provide funds for acquisitions and possibly distributions to shareholders, according to a news release.
The new debt consists of a $1.24 billion credit facility, which includes a $935 million term loan and a $300 million revolving credit facility, and the issuance of $935 million in unsecured notes due in 2019 by Iasis Capital Corp., a wholly owned subsidiary of Iasis Healthcare.
As of Dec. 31, 2010, Iasis listed long-term debt of $1.05 billion, according to a securities filing.
The company also announced a tender offer to repurchase its $475 million notes due in 2014, which carry interest of 8.75%, according to a separate news release. The tender offer is expected to end May 16.
The proceeds of the debt offerings will fund Iasis Healthcare's acquisition of a majority stake in St. Joseph Medical Center in Houston. Iasis previously announced that it would acquire a 78.2% stake in the hospital as part of a bankruptcy auction.