Hospital Owner Said to Be Scrapping Dividend Payout From Bond Offering
This article is for subscribers only.
Prime Healthcare Services Inc., which focuses on turning around financially distressed hospitals, is scrapping a portion of its bond offering set aside to pay a dividend to its owners, according to three people with knowledge of the matter.
The company is planning to reduce the size of its $700 million bond sale and boost the 7.5 percent yield on the securities to gain investor support, said the people, who asked not to be identified as the information isn’t public. Prime Healthcare had proposed using $100 million of the proceeds for the dividend, according to Standard & Poor’s. The debt sale is being arranged by Wells Fargo & Co. and Barclays Plc.