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EPIC HEALTHCARE GROUP TO PURCHASE PREFERRED A AND B STOCK FROM AMERICAN MEDICAL INTERNATIONAL; TRANSACTION WILL ALTER EPIC'S CAPITAL STRUCTURE

EPIC HEALTHCARE GROUP TO PURCHASE PREFERRED A AND B STOCK FROM AMERICAN MEDICAL INTERNATIONAL; TRANSACTION WILL ALTER EPIC'S CAPITAL STRUCTURE
 DALLAS, Jan. 28 /PRNewswire/ -- EPIC Healthcare Group today announced it has signed an agreement with American Medical International (AMI) to purchase from AMI EPIC's Class A preferred and Class B preferred stock for $130 million. As part of the transaction, AMI also will exercise its right to convert Class C preferred stock into approximately 20 percent of EPIC's common stock and will exercise its EPIC warrants for 2 percent, totaling ownership of approximately 22 percent of EPIC on a fully diluted basis.
 According to Kenn S. George, chairman and chief executive officer, today's agreement marks a significant change in EPIC's equity structure. "We are pleased to have reached an agreement with AMI," he said. "We believe this transaction will help simplify our capital structure, which has been complicated since the LBO in 1988."
 AMI currently owns EPIC's Class A, B and C preferred stock. The Class C preferred stock is convertible into approximately 20 percent of EPIC's common stock on a fully diluted basis. AMI also holds warrants for 2 percent of EPIC's common stock. According to Tom Schleck, chief financial officer, "Once the transaction is complete, preferred stock will be eliminated from EPIC's capital structure."
 Schleck added the agreement is contingent upon several factors including regulatory approval, obtaining financing and the amendment of certain of EPIC's debt instruments. Further details concerning the funding of EPIC's transaction will be addressed in the coming weeks, Schleck said.
 Based in Dallas, EPIC Healthcare Group owns and manages 40 hospitals in Texas, Louisiana, Arkansas, Oklahoma, Florida, California, Missouri, South Carolina, Georgia and Mississippi. With 1991 net revenues exceeding $800 million, EPIC is the second-largest employee-owned company and one of the largest investor-owned, acute-care hospital companies in the nation.
 -0- 1/28/92
 /CONTACT: Suzanne Seifert of EPIC Healthcare Group, 214-443-3521/ CO: EPIC Healthcare Group; American Medical International ST: Texas IN: HEA SU: TNM


CK -- NY048 -- 4199 01/28/92 11:31 EST
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Publication:PR Newswire
Date:Jan 28, 1992
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