HILLHAVEN ISSUES $65 MILLION OF CONVERTIBLE DEBENTURES
HILLHAVEN ISSUES $65 MILLION OF CONVERTIBLE DEBENTURES TACOMA, Wash., May 29 /PRNewswire/ -- The Hillhaven Corp.
(AMEX: HIL) announced today that it has issued $65 million of seven- year Convertible Debentures pursuant to the company's Performance Investment Plan. The private placement of the debentures was funded through borrowings from a syndicate of commercial banks and the sale to key employees of rights to acquire the debentures. The debentures are ultimately convertible into Hillhaven common stock at a price of $3.3075 per share.
The proceeds will be used to pay down higher cost debt, resulting in an anticipated interest savings to Hillhaven exceeding $2 million annually. Merrill Lynch & Co. acted as financial adviser to the company in connection with this transaction. J.P. Morgan acted as agent for the syndicate of commercial banks. Hillhaven is the nation's second-largest long-term care provider. It operates 354 (including 78 held for sale) nursing centers, 25 retirement housing communities, two continuing care retirement communities and 122 retail and institutional pharmacies. -0- 5/29/92 /CONTACT: Tim Carroll of Hillhaven, 206-572-4901/ (HIL) CO: The Hillhaven Corp. ST: Washington IN: HEA SU:
SC-LM -- SE006 -- 5207 05/29/92 13:32 EDT
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|Date:||May 29, 1992|
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