Health Management Associates priced a private offering of $875 million of debt at 7.375%, with the interest to be paid twice a year, the company announced.
HMA prices $875 million private offering
The notes are scheduled to mature Jan. 15, 2020, the company said in a news release.
Sale of the notes, which are unsecured, is expected to close Nov. 18, pending customary conditions and a closing of new credit facilities. The unsecured notes will be guaranteed on a senior unsecured basis by HMA wholly owned material subsidiaries that borrow or back its new credit facility or certain other debt, the company said.
The company announced its refinancing plans Nov. 1.
The $875 million offering and other financing will be used to repay existing debt and for general purposes, the company said. Other financing includes borrowing under a new $725 million senior secured term loan; $1.4 billion senior secured term loan; and a proposed new $500 million senior secured revolving credit facility, the company said.
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