Prospect Medical Holdings Announces Pricing of Senior Secured Notes Offering

Prospect Medical Holdings,�Inc. (NYSE Amex: PZZ) (�Prospect� or the �Company�), which owns and operates five hospitals and manages the medical care of HMO enrollees in Southern California, today announced the offering and pricing of $160 million in aggregate principal amount of its 12�% senior secured notes due 2014 (the �notes�) at an issue price of 92.335%. The offering is expected to close on or about July 29, 2009. The Company intends to apply the net proceeds of the sale of the notes, together with cash on hand, to repay the amount outstanding under its existing senior secured credit facility and to terminate its interest rate swap agreements.

The notes have not been registered under the Securities Act of 1933, as amended (the �Securities Act�) and have been offered only to �qualified institutional buyers� pursuant to the requirements of Rule 144A under the Securities Act or to persons outside the United States in accordance with Regulation S under the Securities Act. Unless the notes are subsequently registered, they may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of the notes in any state in which an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

ABOUT PROSPECT MEDICAL HOLDINGS

Prospect operates five hospitals in the greater Los Angeles area and manages the medical care of approximately 183,200 individuals enrolled in HMO plans in Southern California, through a network of approximately 13,900 specialist and primary care physicians.

This press release contains forward-looking statements. Additional written or oral forward-looking statements may be made by Prospect from time to time, in filings with the Securities and Exchange Commission, or otherwise. Statements contained herein that are not historical facts are forward-looking statements. Investors are cautioned that forward-looking statements, including the statements regarding anticipated or expected results, involve risks and uncertainties which may affect the Company�s business and prospects, including those outlined in Prospect�s Form�10-K filed on December�29, 2008, as well as risks and uncertainties arising from Prospect�s acquisition of Alta Hospitals System, LLC and ProMed Health Services Company and its affiliates, and the debt incurred by Prospect in connection with those acquisitions. Any forward-looking statements contained in this press release represent our estimates only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.

Prospect Medical (AMEX:PZZ)
Historical Stock Chart
From Oct 2024 to Nov 2024