Select Medical refinances bondsTim Stuhldreher
Select Medical Corp. is refinancing more than $300 million of debt through a private-placement bond offering.
The Cumberland County-based hospital company on Monday issued a tender offer to buy back $345 million in bonds due in 2015 that pay 7 5/8 percent interest, according to Select Medical Holdings Corp., its parent company. Holders who submit the bonds by the early deadline of 5 p.m. May 18 will receive $1,015.21 per $1,000 face value, which includes a $2.50 premium. Those who submit bonds between May 18 and the close of the offer June 4 will receive $1,012.71, Select Medical said.
Select Medical said it would fund the buyback with proceeds from a $365 million bond issue, also announced Monday, that will come due in 2020. The bonds are being offered "solely to qualified institutional buyers," Select Medical said. The company did not disclose an interest rate.
Based in Lower Allen Township, Select Medical operates 111 hospitals and 12 rehabilitation hospitals, along with 954 outpatient rehabilitation clinics.