$50 Million Raised by Regency Health Will Finance Expansion

Regency Health Services Inc., an operator of nursing and rehabilitative facilities across the state, said it has raised $50 million in sales of IOUs that can later be converted into stock.

The bonds earn interest of 6.5% and are due in 2003. The company also said that the sale of the convertible debentures has allowed it to pay off $8.3 million in bank debt.

In a prepared statement, Chief Executive Cecil Mays said that the money raised will go toward expansion of the company’s pharmacy units and for building new sites.

“We are extremely pleased with the success of our offering,” Mays said.

Regency Health Services, based in Newport Beach, now operates 35 health-care facilities in California with 3,219 licensed beds.

The majority of the company’s facilities provide skilled nursing services for chronically ill patients who need rehabilitative therapy.

Regency’s other facilities specialize in mentally disordered and developmentally disabled clients. Regency also owns and operates a pharmacy that provides drugs to its facilities.