TORONTO, March 28, 2013 /CNW/ - Medical Facilities Corporation ("Medical Facilities" or the "Company") (TSX: DR), announced today that its outstanding 7.5% Convertible Secured Debentures (the "Debentures") will mature on April 30, 2013 in accordance with the terms of the trust indenture (the "Indenture") dated as of April 15, 2008.
The aggregate principal amount of Debentures currently outstanding is $38,485,000. The Company will draw funds from its existing credit facility to repay those Debentures not yet converted at the time the conversion privilege expires. Until the expiry of the conversion privilege, the Debentures, which are listed for trading on the Toronto Stock Exchange under the trading symbol "DR.DB", are convertible at the option of the holder in accordance with the terms of the Indenture at a conversion price of $13.10 per common share of the Company, being a conversion ratio of 76.3359 common shares for each $1,000 principal amount of Debentures so converted. The market price of the common shares on the Toronto Stock Exchange on March 27, 2013 was $15.21, or $2.11 higher than the conversion price.
In order for Debentures to be converted, arrangements should be made well in advance of the expiry time (given the administrative requirements of CDS and intermediaries) such that all required documentation is received by the debenture trustee, Computershare Trust Company of Canada, prior to 5:00 p.m. (Toronto time) on April 30, 2013. Beneficial holders with any questions about the Debentures and the conversion privilege should contact their respective brokerage firm or financial institution, which holds interests in the Debentures through CDS on their behalf. Non-registered holders (banks, brokerage firms or other financial institutions) who maintain their interests in the Debentures through CDS should contact their CDS customer service representative with any questions.
About Medical Facilities
Medical Facilities owns controlling interests in five specialty surgical hospitals located in South Dakota, Arkansas and Oklahoma, as well as an ambulatory surgery center in California. The specialty hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities. The ambulatory surgery center specializes in outpatient surgical procedures, with patient stays of less than 24 hours. Medical Facilities is structured so that a majority of its free cash flow from operations is distributed to the holders of its common shares in the form of dividends. For more information, please visit www.medicalfacilitiescorp.ca.
Caution concerning forward-looking statements
Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations and include statements about the Company's Debentures. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in Medical Facilities' filings with Canadian securities regulatory authorities such as legislative or regulatory developments, intensifying competition, technological change and general economic conditions. All forward-looking statements presented herein should be considered in conjunction with such filings. Medical Facilities does not undertake to update any forward-looking statements; such statements speak only as of the date made.
SOURCE: Medical Facilities Corporation
For further information:
Chief Financial Officer
Medical Facilities Corp.
(416) 416-848-7380 or 1-877-402-7162
Medical Facilities Corp.
(416) 815-0700 or 1-800-385-5451 ext.242
Email: [email protected]