Vanguard Health Systems closes $950M 8% Senior Notes offering

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.