Westworld Plans Stock, Debenture Sale This Year

Westworld Community Healthcare Inc., the Lake Forest-based operator of a chain of rural hospitals and clinics, said Friday it plans to raise a total of about $42 million through a stock and subordinated debenture sale later this year.

The company said proceeds from the sale would be used to repay bank loans and to finance Westworld’s expansion plans.

Michael Dunn, Westworld’s chairman and chief executive, said the company will sell $35 million worth of subordinated debentures plus 650,000 shares of common stock. At today’s prices, the stock would raise about $7 million.

The debenture offering will be managed by Drexel Burnham Lambert Inc. The stock offering will be handled jointly by Drexel and Sanford C. Bernstein & Co. Inc.

Westworld, founded in 1982, operates 34 hospitals in rural communities throughout the nation.