Published on January 30, 2010 at 12:30 AM
Vanguard Health Systems, Inc. ("Vanguard")
announced the closing today of the private placement offering of $950.0
million aggregate principal amount of 8% Senior Notes due 2018 (the
"Notes") co-issued by Vanguard's subsidiaries, Vanguard Health Holding
Company II, LLC ("VHS Holdco II") and Vanguard Holding Company II, Inc.
("VHS Holdco II Inc." and, together with VHS Holdco II, the "Issuers").
The Issuers' obligations under the Notes will be fully and unconditionally
guaranteed on a senior unsecured basis by Vanguard, Vanguard Health Holding
Company I, LLC ("VHS Holdco I"), and certain restricted subsidiaries of VHS
Holdco II. The net proceeds of the Notes offering were used, together with
borrowings under our new credit facility described below and cash on hand:
(i) to fund the previously announced tender offers for any and all of the
outstanding (a) $575.0 million aggregate principal amount of 9% Senior
Subordinated Notes due 2014 co-issued by the Issuers and (b) $216.0 million
aggregate principal amount at maturity of 11.25% Senior Discount Notes due
2015 co-issued by VHS Holdco I and Vanguard Holding Company I, Inc.; (ii)
to redeem securities held by Vanguard's existing stockholders; and (iii) to
pay related fees and expenses. In connection with the Notes offering, VHS
Holdco II terminated its existing senior secured credit facilities and
entered into a new $815.0 million term loan and a new $260.0 million
revolving credit facility.
SOURCE: Vanguard Health Systems, Inc.