Universal Health Services, Inc. Announces Offering Of Senior Secured Notes
Universal Health Services, Inc. (UHS) announced an offering of senior secured notes due 2030, intending to raise funds to redeem $700 million of its existing 4.750% Senior Secured Notes due 2022. The redemption is set for September 28, 2020. Proceeds will also cover accrued interest, transaction expenses, and general corporate purposes. These notes are not registered under the Securities Act and will be sold only to qualified institutional buyers. UHS is a leading provider of healthcare services, operating across the U.S., Puerto Rico, and the U.K.
- Offering of $700 million senior secured notes may help improve the company's financial flexibility.
- Intended use of proceeds for redeeming existing notes suggests a proactive debt management strategy.
- Notes have not been registered under the Securities Act, limiting their marketability.
- Future cash flow may be impacted by the redemption of existing notes.
KING OF PRUSSIA, Pa., Sept. 10, 2020 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) today announced an offering of senior secured notes due 2030 (the "Notes"). The Company intends to use the net proceeds of the offering, together with cash on hand, to redeem all of the outstanding
The Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities law and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A of the Securities Act and outside the United States under Regulation S of the Securities Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offers of the Notes will be made only by means of a private offering memorandum. This notice is being issued pursuant to and in accordance with Rule 135(c) under the Securities Act.
Certain statements in this release may constitute forward-looking statements and are subject to various risks and uncertainties as discussed in the Company's filings with the Securities and Exchange Commission. The Company is not obligated to update these forward-looking statements even if the Company's assessment of these risks and uncertainties changes.
Universal Health Services, Inc. ("UHS") is one of the nation's largest providers of hospital and healthcare services. Through its subsidiaries, UHS operates acute care hospitals, behavioral health facilities, outpatient facilities and ambulatory care access points located throughout the United States, Puerto Rico and the United Kingdom.
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SOURCE Universal Health Services, Inc.
FAQ
What is the purpose of the senior secured notes announced by UHS?
When is UHS planning to redeem the existing notes?
Who can purchase the senior secured notes offered by UHS?
What risks are associated with the senior secured notes offering by UHS?
