Summit Health Completes Offering of Securities

Summit Health Ltd. has completed a novel offering of hybrid securities after postponing the sale last month because of weak market conditions.

The Burbank-based hospital operator effectively offered to the public its 52% equity stake in Summit Care Corp., a nursing-home operator also based in Burbank, by selling $37.4 million of 10-year notes that can be exchanged into Summit Care’s common stock.

Summit Health initially planned to offer $50 million of the notes, but their face value was lowered because Summit Care’s stock price has fallen recently.

The notes, which also carry an interest rate of 7.5%, can be exchanged starting April 2, 1994, at the equivalent of $14.40 per Summit Care share.

Summit Care closed Monday at $11.25 on the NASDAQ market.