TORONTO, March 4, 2013 /CNW/ - Medical Facilities
Corporation ("Medical Facilities" or the "Company") (TSX: DR),
announced today that the conversion privilege associated with its
7.5% Convertible Secured Debentures maturing on April 30, 2013 (the "Debentures") will expire at
5:00 p.m. (Toronto time) on April
30, 2013 in accordance with the terms of the trust indenture
(the "Indenture") dated as of April 15,
2008.
In order for Debentures to be converted,
arrangements should be made well in advance of the expiry time such
that all required documentation is received by the debenture
trustee, Computershare Trust Company of Canada, prior to 5:00
p.m. (Toronto time) on
April 30, 2013. Beneficial holders
with any questions about the Debentures and the conversion
privilege should contact their respective brokerage firm or
financial institution, which holds interests in the Debentures
through CDS on their behalf. Non-registered holders (banks,
brokerage firms or other financial institutions) who maintain their
interests in the Debentures through CDS should contact their CDS
customer service representative with any questions.
The aggregate principal amount of Debentures
currently outstanding is $41,910,000.
The Company will draw funds from its existing credit facility to
repay the Debentures not yet converted at the time the conversion
privilege expires. The Debentures, which are listed for trading on
the Toronto Stock Exchange under the trading symbol "DR.DB", are
convertible at the option of the holder in accordance with the
terms of the Indenture at a conversion price of $13.10 per common share of the Company, being a
conversion ratio of 76.3359 common shares for each $1,000 principal amount of Debentures so
converted. The market price of the common shares on the Toronto
Stock Exchange on March 1, 2013 was
$14.84, or $1.74 higher than the conversion price.
About Medical Facilities
Medical Facilities owns controlling interests in
five specialty surgical hospitals located in South Dakota, Arkansas and Oklahoma, as well as an ambulatory surgery
center in California. The
specialty hospitals perform scheduled surgical, imaging, diagnostic
and other procedures, including primary and urgent care, and derive
their revenue from the fees charged for the use of their
facilities. The ambulatory surgery center specializes in outpatient
surgical procedures, with patient stays of less than 24 hours.
Medical Facilities is structured so that a majority of its
available free cash flow from operations is distributed to the
holders of its Common Shares in the form of dividends. For more
information, please visit www.medicalfacilitiescorp.ca.
Caution concerning forward-looking
statements
Statements made in this news release, other
than those concerning historical financial information, may be
forward-looking and therefore subject to various risks and
uncertainties. Some forward-looking statements may be
identified by words like "may", "will", "anticipate", "estimate",
"expect", "intend", or "continue" or the negative thereof or
similar variations and include statements about the Company's
Debentures. Certain material factors or assumptions are applied in
making forward-looking statements and actual results may differ
materially from those expressed or implied in such
statements. Factors that could cause results to vary include
those identified in Medical Facilities' filings with Canadian
securities regulatory authorities such as legislative or regulatory
developments, intensifying competition, technological change and
general economic conditions. All forward-looking statements
presented herein should be considered in conjunction with such
filings. Medical Facilities does not undertake to update any
forward-looking statements; such statements speak only as of the
date made.
SOURCE Medical Facilities Corporation