With interest rates still at super-low levels, executives at LifePoint Hospitals have decided to simplify their financial structure a bit by amending their credit package with a group of lenders led by Bank of America. The deal lets the Brentwood-based company issue another $325 million in term loans. The plan is to use about $225 million of that next week to redeem 3.25 percent convertible notes due in 2025.
Corrections Corp. of America notified investors on Monday that it will redeem $40 million of senior notes that would have come due next year. The move, which is expected to be completed next month, comes two weeks after CCA said it would launch a dividend and end its share repurchase program.
Noranda Aluminum had no trouble attracting offers for its plan to retire $75 million of its debt due in 2015. The Franklin-based metal processor (Ticker: NOR) received valid tenders for three times the allotted amount.
Corrections Corp. of America plans to buy back $150 million of debt that would have matured in March of 2013. The Nashville-based prison manager will pay a small premium for the notes, which are yielding 5.9 percent. CCA finished its third quarter with $1.2 billion in long-term debt.
Community Health Systems has announced it will buy back $1 billion of debt that would have matured in 2015. The repurchase will give debt holders $1,047 for every $1,000 they hold and will expire Dec. 6. CHS finished the third quarter with $8.8 billion in long-term debt and a debt-to-equity ratio of 3.6.
Discount retailer Dollar General has bought back some $840 million of senior debt that would have come due in 2015. The move, which the company had signaled earlier this year, will result in a $60 million pre-tax charge this quarter. The good news: Moody's may soon upgrade the debt rating of Goodlettsville-based Dollar General.
Healthcare Realty Trust said yesterday it has completed the redemption of about $280 million of its debt and will take a $1.9 million charge in its first quarter to account for the extra interest it woud have paid on the notes in Q2. The Nashville-based medical office REIT had about $1.4 billion in total debt at the end of 2010.
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