said that its recently completed convertible note offering and debt repurchase would not impact its 2002 guidance, but the company could reduce interest expense if more notes are purchased over the course of the year.
The hospital operator said that it has completed its previously announced offering of $250 million of its 4 1/2% convertible subordinated notes, due June 2009, with expected net proceeds of about $242.6 million. The company plans to use the proceeds for general corporate purchases, which may include the repurchase of some of its debt, subject to market conditions.
The company has already repurchased about $65 million of its 10 3/4% senior subordinated notes, with about $85 million in principal amount still outstanding.
LifePoint said it did not expect the debt repurchase or the completed offering to have an impact on its 2002 guidance, as the company still expects to see full-year revenue growth of 14% to 16% and EPS of $1.23 to $1.25. Analysts polled by Thomson Financial/First Call are looking for EPS of $1.31 for the year. LifePoint also noted that it could add an additional 3 cents per quarter to its earnings if it successfully repurchases the remaining 10 3/4% notes by the end of the year.
Shares of LifePoint were trading down about 3% to $37.35 on the news in the premarket after closing at $38.34 Thursday.