FRANKLIN, Tenn., Dec. 14 /PRNewswire-FirstCall/ -- Psychiatric Solutions, Inc. (“PSI”) today announced a public offering of 3,000,000 shares of its Common Stock at a price of $33.70 per share. PSI is offering 2,850,000 shares and certain of PSI’s existing stockholders are offering 150,000 shares. The underwriters also have an option to purchase up to an additional 450,000 shares of Common Stock from PSI and one of PSI’s directors to cover over-allotments, if any. Merrill Lynch & Co. and Citigroup Global Markets Inc. are the joint book-running managers of the offering. Lehman Brothers Inc., Banc of America Securities LLC, Raymond James & Associates, Inc. and Avondale Partners, LLC are the co-managers of the offering.
PSI intends to use the net proceeds from the offering to redeem $50 million of its 10-5/8% senior subordinated notes due 2013 and to pay down a portion of its revolving credit facility. PSI will not receive any proceeds from the sale of Common Stock by the selling stockholders.
PSI offers an extensive continuum of behavioral health programs to critically ill children, adolescents and adults through its operation of 34 owned or leased freestanding psychiatric inpatient facilities with more than 4,000 beds. PSI also manages freestanding psychiatric inpatient facilities for government agencies and psychiatric inpatient units within medical/surgical hospitals owned by others.
This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state of which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements other than those made solely with respect to historical fact and are based on the intent, belief or current expectations of PSI and its management. PSI’s business and operations are subject to a variety of risks and uncertainties that might cause actual results to differ materially from those projected by any forward- looking statements. Factors that could cause such differences include, but are not limited to: (1) potential competition which alters or impedes PSI’s acquisition strategy by decreasing PSI’s ability to acquire additional facilities on favorable terms; (2) the ability of PSI to improve the operations of acquired facilities; (3) the ability to maintain favorable and continuing relationships with physicians who use PSI’s facilities; (4) the ability to receive timely additional financing on terms acceptable to PSI to fund PSI’s acquisition strategy and capital expenditure needs; (5) risks inherent to the healthcare industry, including the impact of unforeseen changes in regulation, reimbursement rates from federal and state healthcare programs or managed care companies and exposure to claims and legal actions by patients and others; and (6) potential difficulties in integrating the operations of PSI with recently acquired operations. The forward-looking statements herein are qualified in their entirety by the risk factors set forth in PSI’s filings with the Securities and Exchange Commission, including the factors listed in Amendment No. 1 to the Company’s Registration Statement on Form S-3, filed with the Securities and Exchange Commission on December 14, 2004, under the caption “Risk Factors.” PSI undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Readers should not place undue reliance on forward- looking statements, which reflect management’s views only as of the date hereof.
A prospectus relating to these securities may be obtained from Merrill Lynch, Pierce, Fenner & Smith Incorporated, Prospectus Department, 4 World Financial Center, F105, New York, New York 10080, telephone: (212) 449-1000, and Citigroup Global Markets Inc., Prospectus Department, at Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220, telephone: (718) 765-6732, facsimile: (718) 765-6734.
Psychiatric Solutions, Inc.
CONTACT: Brent Turner, Vice President, Treasurer and Investor Relationsof Psychiatric Solutions, Inc., +1-615-312-5700