NAPLES, Fla., Nov. 10 /PRNewswire-FirstCall/ -- Health Management Associates, Inc. announced today that it has commenced a solicitation of consents to an amendment to the indenture related to its 1.50% Convertible Senior Subordinated Notes due 2023 (CUSIP Nos. 421933AE2 and 421933AF9) (the "Notes").
Pursuant to the terms of the indenture under which the Notes were issued, the Company generally has the right to elect to deliver, in lieu of common stock, cash or a combination of cash and common stock upon a conversion of the Notes. However, the indenture currently prohibits the Company from paying cash upon a conversion of the Notes if an event of default, as defined in the indenture, exists at that time. The Company is seeking consents from holders of the Notes to amend the indenture to eliminate this prohibition. The Company is not, and does not expect to be, in default under the indenture, but is seeking the consents needed to enable the Company to preserve the current accounting treatment of the Notes as it affects earnings per share.
The record date for the consent solicitation is 5:00 p.m., New York City time, on November 9, 2004. The consent solicitation will expire at 5:00 p.m., New York City time, on November 23, 2004, unless extended. The Company is offering a consent fee of $2.50 per $1,000 original principal amount of the Notes to each holder of record as of the record date who has delivered (and has not revoked) a valid consent prior to the expiration of the consent solicitation. The Company's obligation to accept consents and pay the consent fee is conditioned, among other things, on the receipt of consents from holders of at least a majority in original principal amount of the outstanding Notes.
For a complete statement of the terms and conditions of the consent solicitation and the amendment to the indenture, holders of the Notes should refer to the Consent Solicitation Statement dated November 10, 2004, which is being sent to all holders of record of the Notes as of the record date. Questions from holders regarding the consent solicitation or requests for additional copies of the Consent Solicitation Statement, the Letter of Consent or other related documents should be directed to Global Bondholder Services Corporation, the Information Agent for the consent solicitation, at (866) 389-1500 or Merrill Lynch & Co., the Solicitation Agent for the consent solicitation, at (888) 654-8637.
HMA is the premier operator of non-urban general acute care hospitals in communities situated throughout the United States. HMA has generated 16 years of uninterrupted operating earnings growth and upon completing the previously announced exchange of 76-bed Williamson Memorial Hospital for 56-bed Bartow Memorial Hospital, will operate 53 hospitals in 15 states with approximately 7,526 licensed beds.
All references to "HMA" used in this release refer to Health Management Associates, Inc. or its affiliates.
Certain statements contained in this release, including, without limitation, statements containing the words "believes," "anticipates," "plans", "intends," "expects", "optimistic," and words of similar import, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include projections of revenues, income or loss, capital expenditures, capital structure, or other financial items, statements regarding the plans and objectives of management for future operations, statements of future economic performance, statements of the assumptions underlying or relating to any of the foregoing statements, and other statements which are other than statements of historical fact.
Statements made throughout this release are based on current estimates of future events, and HMA has no obligation to update or correct these estimates. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially as a result of these various factors.
Photo: http://www.newscom.com/cgi-bin/prnh/20030418/HMALOGOHealth Management Associates, Inc.CONTACT: John C. Merriwether, Vice President of Financial Relations ofHealth Management Associates, Inc., +1-239-598-3104
Web site: http://www.hma-corp.com/