Ontario, Calif.-based Prime Healthcare has closed its public offering of $700 million in senior secured notes with a 7.25 percent interest rate due in 2025.
The 31-hospital system said it initially offered $610 million in secured notes, but upped the offered amount due to an "overwhelming demand by investors."
Prime said it plans to use the proceeds from the offering to refinance debt and expand integration strategies, acquisitions and working capital.
"This financing affirms the strength of Prime's model, platform and strategic vision," said Prime Healthcare CFO Steve Aleman. "We are extremely pleased by the investor response and demand leading to the ability to not only complete, but expand, this offering."