ONTARIO, Calif.–(BUSINESS WIRE)–Prime Healthcare Services, Inc. (the “Company” or “Prime Healthcare”) today announced that as of 5:00 p.m., New York City time, on August 17, 2022 (the “Early Participation Date”), pursuant to and in accordance with its previously announced cash tender offer (the “Tender Offer”), approximately $10.84 million in aggregate principal amount of the Company’s notes listed in the table below (collectively, the “Notes”) had been validly tendered and not validly withdrawn on or prior to the Early Participation Date.

Title of Securities









Aggregate Principal

Amount Tendered(1)



7.250% Senior Secured


maturing November 2025


144A: 74165HAB4

Reg S: U7410WAB1


144A: US74165HAB42

Reg S: USU7410WAB10







As of the Early Participation Date.




Subject to satisfaction or waiver of the conditions set forth in the Offer to Purchase, Prime Healthcare anticipates that Notes will be accepted for purchase in accordance with the terms of the Tender Offer on September 2, 2022. However, there can be no assurance that the conditions set forth in the Offer to Purchase will be satisfied or waived.




In the case of Notes expected to be accepted for purchase on a prorated basis, the amounts set forth in the table reflect the Proration Factor (as defined below).




Per $1,000 principal amount of Notes accepted for purchase by the Company.




Includes the $50.00 Early Participation Amount (as defined below).

Prime also announced today that it had amended the Tender Offer so that holders of Notes (“Holders”) who validly tender and do not withdraw their Notes on or prior to the Expiration Date (as defined below), and whose Notes are accepted for purchase, will be entitled to receive the “Total Consideration,” of $920.00 per $1,000 principal amount of Notes validly tendered that are accepted for purchase by the Company, which includes the early participation amount of $50.00 per $1,000 principal amount of Notes (the “Early Participation Amount”).

The Tender Offer is described in the Offer to Purchase, dated August 4, 2022 (as it may be amended or supplemented, the “Offer to Purchase”). Accrued and unpaid interest will be paid on all Notes validly tendered (and not validly withdrawn) and accepted for purchase from the applicable last interest payment date to, but not including, the date on which the Notes are purchased.

The Withdrawal Date (as defined in the Offer to Purchase) occurred at 5:00 p.m., New York City time, on August 17, 2022, and has not been extended. Therefore, Holders who validly tendered and did not validly withdraw their Notes at or prior to 5:00 p.m., New York City time, on August 17, 2022, and Holders who validly tender their Notes after that time, may not withdraw their tendered Notes.

The Tender Offer will expire at 11:59 p.m., New York City time, on August 31, 2022, unless extended or earlier terminated as described in the Offer to Purchase (such date and time, as they may be extended, the “Expiration Date”). The Tender Offer is subject to the satisfaction or waiver of a number of conditions as set forth in the Offer to Purchase.

Subject to satisfaction or waiver of the conditions set forth in the Offer to Purchase, Prime Healthcare anticipates that settlement of Notes accepted for purchase will occur on September 2, 2022, and that on such date Prime Healthcare will accept for purchase Notes tendered as of the Early Participation Date for the Total Consideration, as described in the Offer to Purchase.

Barclays Capital Inc. is acting as the Dealer Manager for the Tender Offer. D.F. King & Co., Inc. is serving as the Information agent and Tender Agent. Copies of the Offer to Purchase and related tender offering materials are available by contacting the Information Agent at (212) 269-5550 (banks and brokers) and at (888) 869-7406 (all others) or by email at primehealthcare@dfking.com. Questions regarding the Tender Offer should be directed to Barclays at +1 (212) 528-7581 (collect) and +1 (800) 438-3242 (toll free).

None of the Company, the Dealer Manager, the Information Agent and Tender Agent or the trustee for the Notes makes any recommendation as to whether Holders should tender any Notes in response to the Tender Offer. Holders must make their own decision as to whether to tender any of their Notes and, if so, the principal amount of Notes to tender. This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. The Tender Offer is being made solely by means of the Offer to Purchase. In those jurisdictions where the securities, blue sky or other laws require any tender offer to be made by a licensed broker or dealer, the Tender Offer will be deemed to be made on behalf of the Company by the Dealer Manager or one or more registered brokers or dealers licensed under the laws of such jurisdiction.

Cautionary Statement on Forward-Looking Language

Forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, are made throughout this release. These forward-looking statements are sometimes identified from the use of forward-looking words such as “believe,” “should,” “could,” “potential,” “continue,” “expect,” “project,” “estimate,” “predict,” “anticipate,” “aim,” “intend,” “plan,” “forecast,” “target,” “is likely,” “will,” “can,” “may” or “would” or the negative of these terms or similar expressions elsewhere in this release. Our financial condition, results of operations and cash flows may differ materially from those in the forward-looking statements. Such statements are based on our management’s current views and assumptions and involve risks and uncertainties that could affect expected results. Those risks and uncertainties include, but are not limited to, the following: the impact of the COVID-19 pandemic and worsening economic conditions; potential acquisitions could be costly, unsuccessful or subject us to material unexpected liabilities; our ability to grow our business, successfully integrate acquisitions, and efficiently manage growth; our reliance on our key senior management team and local management personnel; a failure of our back office infrastructure could adversely impact our ability to manage our operations; changes in general economic and employment conditions; the geographic concentration of our operations, which make us sensitive to local regulatory and economic changes; our ability to enter into favorable contracts with managed care plans; our exposure to the increased amounts of and collection risks associated with uninsured accounts and the copay and deductible portions of insured accounts; potential lawsuits or other claims asserted against us, including potential government investigations; the challenges posed by the competitive nature of the healthcare industry, including competition and increasing costs related to recruiting talented staff and competition hampering our ability to acquire additional hospitals on favorable terms; our failure to adequately upgrade our facilities with technologically advanced equipment; the potential impact of a cybersecurity incident and any resulting litigation, government inquiries, and damage to our reputation; our ability to attract and retain qualified management and healthcare professionals, including physicians and nurses; cost containment efforts and reductions in reimbursement rates applicable to Medicare and Medicaid programs including in connection with federal budget sequestration or changes in budgetary priorities by state and local governments; the efforts of insurers, healthcare providers, patients and others to contain healthcare costs, including reductions or adjustments in reimbursement rates under federal and state healthcare programs; rankings based on clinical outcomes, cost, quality, patient satisfaction and other performance indicators; continued growth of uninsured and “patient due” accounts; ineffective implementation of our electronic information systems or a failure in such system could adversely affect our operations; any potential responsibilities and costs under environmental laws; any unfavorable negotiations with our labor unions, labor disruptions or increased labor costs and any litigation concerning or with our medical staff; the extent of distributions to our controlling shareholder; our continued capital expenditures and other commitments associated with ongoing acquisitions; the small number of stockholders, our related party transactions and our controlling shareholder’s affiliation with the company that provides much of our insurance coverage; our eligibility to participate in the Medicare and Medicaid programs; any future federal and state antitrust regulations; our pension liabilities and funding obligations; governmental regulation of the industry, including Medicare and Medicaid reimbursement levels as well as construction, acquisition or expansion of hospitals; our requirement to treat patients with emergency medical conditions regardless of ability to pay; the impact from health reform efforts, including legal challenges to, and efforts to, repeal, replace, or change the Patient Protection and Affordable Care Act, as amended; any potential penalties or required changes following failure to comply with laws and any impacts from complying with federal and state privacy laws, including the Health Insurance Portability and Accountability Act of 1996, as amended; any changes to or discontinuation of the California’s Hospital Quality Assurance Fee Program; failure to implement of information systems to comply with new coding requirements; our high degree of leverage and our ability to incur substantially more debt or refinance existing debt; and interest rate risk.

In light of these risks, uncertainties and assumptions, the forward-looking statements contained in this release might not prove to be accurate and you should not place undue reliance upon them. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

About Prime Healthcare Services, Inc.

Prime Healthcare is headquartered in Ontario, California and operates 45 hospitals and has more than 300 outpatient locations in 14 states. Prime Healthcare provides more than 2.6 million patient visits annually. It is one of the nation’s leading health systems with nearly 50,000 employees and physicians. Fourteen of the Prime Healthcare hospitals are members of the Prime Healthcare Foundation, a 501(c)(3) not-for-profit public charity.


Elizabeth Nikels / 909-235-4305 enikels@primehealthcare.com