Rotech Healthcare Inc. (OTCBB: ROHI) announced today that the company intends to offer, subject to market and other conditions, $225 million in aggregate principal amount of Senior Secured Notes due 2015.
Rotech expects to use the net proceeds received from the offering to repay borrowings under the company's existing payment-in-kind term loan facility, payment of related fees and expenses and for general corporate purposes, including funding the company's strategic priorities.
The notes and the related subsidiary guarantees have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws. Accordingly, the notes will be offered only to qualified institutional buyers in reliance on Rule 144A, and to persons outside the United States under Regulation S, under the Securities Act. Unless so registered, the notes may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. Prospective purchasers that are qualified institutional buyers are hereby notified that the seller of the notes may be relying on the exemption from the provisions of Section 5 of the Securities Act provided by Rule 144A.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
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