Hospital company LifePoint Health will soon have more cash in the bank than expected. The company's offering of eight-year senior notes grew Thursday to $500 million from $300 million and has been priced at 5.875 percent. Executives plan to use the moeny for general corporate purposes, including acquisitions and share buybacks. LifePoint stock (Ticker: LPNT) was up more than 1 percent to nearly $70 early Friday.
LifePoint Health executives are going to the debt market to raise $300 million in eight-year senior debt for all-encompassing "general corporate purposes." We don't have details yet about the terms of that funding, but the Brentwood-based hospital owner says it might spend the money on acquisitions or to buy back its shares. LifePoint shares (Ticker: LPNT) this morning are down some 5 percent to about $70.25. They've dropped about 7 percent over the past six months.
National Health Investors executives have sold $100 million of debt to a private placement lender. The money raised was split evenly between eight-year notes with a coupon of 3.99 percent and 10-year notes paying 4.33 percent. Both series are unsecured and were used to pay down debt on NHI's $550 million revolving credit line, which is the company's (Ticker: NHI) only debt with a variable interest rate.
National HealthCare Corp. and Bank of America have agreed to a new $175 million line of credit that will replace the companies' $75 million deal, which was to have expired Oct. 21. NHC CEO Robert Adams says the new line will let his team complete the roughly $170 million redemption of their preferred shares while continuing to invest in their regular businesses. The credit line will mature on five years.
Shares of Murfreesboro-based NHC (Ticker: NHC) are changing hands this morning around $63.30, flat on the day and for the year.
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