Accendra Health announces exchange offer, consent solicitations

RICHMOND, Va. – Accendra Health has commenced an offer to exchange any and all of the company’s outstanding 4.5% senior notes due 2029 and 6.625% senior notes due 2030. Eligible holders of 2029 notes that participate in the new money notes issuance will be able to exchange such 2029 notes for newly issued 9% senior secured first lien notes due 2032 and newly issued 9.75% senior secured second lien notes due 2033. Eligible holders of 2029 notes that do not participate in the new money notes issuance and eligible holders of 2030 notes will be able to exchange such notes for second lien notes. In addition, the company is soliciting consents from eligible holders of the existing notes to adopt certain proposed amendments to the indentures governing the existing notes to eliminate substantially all of the affirmative and negative covenants, eliminate certain events of default, modify covenants regarding mergers and consolidations and modify or eliminate certain other provisions contained in the existing notes indentures, including provisions related to defeasance. In connection with the exchange offer for the 2029 notes, the company is also offering $326.25 million in aggregate principal amount of newly issued first lien notes for cash. The new notes will be issued by the company and guaranteed on a senior secured basis by its existing and future wholly-owned domestic subsidiaries, including each subsidiary guarantor of the existing Notes. Each eligible holder of 2029 notes will only be entitled to receive the new money participant early exchange consideration if they tender their 2029 notes at or prior to the early exchange time and deliver in cash their pro rata cash portion of $65.25 million in aggregate principal amount of first lien notes to the exchange agent by the funding date. FMI, go here.

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