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aggregate principal amount of $286 million and Increasing Rate
Guaranteed Subordinated Debentures (Guaranteed Debentures) having
an aggregate principal amount of $240 million. Additionally, the
Subsidiaries assumed the obligations of HCA and certain of its
subsidiaries under certain loans having an aggregate principal
amount of approximately $7,700,000.
Interest was payable on the loans under the Credit Agreement
at a fluctuating rate, which initially was 10.25 percent.
Interest was payable on the Senior Subordinated Notes at a
fluctuating rate which increased each quarter and initially was
12.063 percent. The Guaranteed Debentures were guaranteed by HCA
and interest thereon was payable at a fluctuating rate which
increased each quarter and initially was 8.563 percent. In
total, HealthTrust borrowed over $1.7 billion in connection with
its acquisition of the Subsidiaries' stock.
Pursuant to the reorganization, the ESOP purchased 99.5
percent of the initially outstanding Common Stock for $30 per
share, and HealthTrust Management purchased the remaining 0.5
percent also for $30 per share. HealthTrust Management borrowed
the funds from HealthTrust to purchase their Common Stock. The
loans to HealthTrust Management were for a 10-year period and
bore interest at the prime rate of Chase Manhattan Bank, which
was payable annually either in cash or by the delivery to
HealthTrust of promissory notes, which matured on September 17,
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