TeamHealth Announces Exercise of Over-Allotment Option for Previously Announced Initial Public Offering
January 11 2010 - 5:18PM
PR Newswire (US)
Increased Amount of Total Debt to be Redeemed Successful Completion
of Amendments to Senior Credit Agreement and Indenture Covering
11.25% Senior Subordinated Notes KNOXVILLE, Tenn., Jan. 11
/PRNewswire-FirstCall/ -- TeamHealth Holdings, Inc. ("TeamHealth")
(NYSE:TMH) today announced that the underwriters of its recent
initial public offering of common stock exercised in full their
over-allotment option to purchase an additional 1,995,000 shares of
common stock from the Company at the previously announced price of
$12.00 per share. TeamHealth intends to use the additional net
proceeds of approximately $22.5 million to redeem, on a pro rata
basis, approximately $20.6 million aggregate principal amount of
its outstanding 11.25% Senior Subordinated Notes due in 2013 (the
"Notes"). BofA Merrill Lynch; Goldman, Sachs & Co.; Barclays
Capital and Citi acted as joint book-running managers for the
offering. Credit Suisse, Deutsche Bank Securities, UBS Investment
Bank, Morgan Keegan & Company, Inc. and Stephens Inc. were the
co-managers of the offering. TeamHealth previously announced a pro
rata redemption of approximately $136.9 million of Notes. Two
separate notices of redemption reflecting the $136.9 million
redemption and the $20.6 million redemption have been sent to all
registered holders of the Notes by the Notes trustee, The Bank of
New York Mellon Trust Company, N.A. TeamHealth will redeem Notes
held by noteholders on a pro rata basis at a redemption price of
107.000% of the principal amount, plus accrued and unpaid interest,
to the applicable redemption dates. TeamHealth intends to
consummate the initial $136.9 million redemption on January 25,
2010, and the additional $20.6 million redemption on February 12,
2010. In addition, TeamHealth also announced the successful
completion of an amendment to Team Finance, LLC's ("Team Finances")
senior secured credit agreement, effective on December 22, 2009,
and that it entered into a new supplemental indenture relating to
the Notes. Pursuant to the supplemental indenture, effective
December 23, 2009, TeamHealth became a guarantor of Notes to
streamline TeamHealth's reporting obligations going forward. The
amendment to Team Finance's senior secured credit agreement
provides Team Finance additional flexibility under certain of its
covenants, including permitting it to make additional investments,
loans and advances, to make additional repayments of its senior
subordinated notes, and to incur additional earn-out obligations in
connection with permitted acquisitions. In addition, lenders
holding $125.0 million of commitments in the aggregate under the
revolving credit facility agreed to extend the maturity date of
their commitments to August 23, 2012. Under no circumstances shall
this press release constitute an offer to buy or the solicitation
of an offer to sell the Notes or any other securities of
TeamHealth. About TeamHealth TeamHealth (Knoxville, Tenn.)
(NYSE:TMH) was founded in 1979 and has become one of the largest
suppliers of outsourced healthcare professional staffing and
administrative services to hospitals and other healthcare providers
in the United States. Through its seven principal service lines
located in 13 regional sites, TeamHealth's more than 6,200
affiliated healthcare professionals provide emergency medicine,
hospital medicine, anesthesia, teleradiology, urgent care, and
pediatric staffing and management services to more than 560
civilian and military hospitals, clinics, and physician groups in
48 states. For more information about TeamHealth, visit
http://www.teamhealth.com/. Forward Looking Statements Statements
and information contained herein that are not historical facts and
that reflect the current view of Team Health Holdings, Inc. (the
"Company") about future events and financial performance are hereby
identified as "forward looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Some of these
statements can be identified by terms and phrases such as
"anticipate," "believe," "intend," "estimate," "expect,"
"continue," "could," "should," "may," "plan," "project," "predict"
and similar expressions. The Company cautions that such "forward
looking statements," including without limitation, those relating
to the Company's future business prospects, revenue, working
capital, professional liability expense, liquidity, capital needs,
interest costs and income, wherever they occur in this or in other
statements attributable to the Company, are necessarily estimates
reflecting the judgment of the Company's senior management and
involve a number of risks and uncertainties that could cause actual
results to differ materially from those suggested by the "forward
looking statements." Factors that could cause our actual results to
differ materially from those expressed or implied in such
forward-looking statements include but are not limited to current
or future government regulation of the healthcare industry,
exposure to professional liability lawsuits and governmental agency
investigations, the adequacy of insurance coverage and insurance
reserves, as well as those factors detailed from time to time in
the Company's filings with the Securities and Exchange Commission.
The Company disclaims any intent or obligation to update "forward
looking statements" herein to reflect changed assumptions, the
occurrence of unanticipated events, or changes to future operating
results over time. DATASOURCE: TeamHealth Holdings, Inc. CONTACT:
Tracy Young, Vice President, Communications, 1-800-818-1498 Web
Site: http://www.teamhealth.com/
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