OrNda Note Sale Backs Fountain Valley Hospital Deal

OrNda Healthcorp, a provider of health-care management services based in New York, sold $125 million worth of 10-year senior subordinated notes.

The notes, non-redeemable for five years, were priced at $995.67 per $1,000 of bonds, providing a yield of 11.45%, according to MCM CorporateWatch.

The notes are rated “B2” by Moody’s Investors Service Inc. and “B-” by Standard & Poor’s Corp. Merrill Lynch & Co., Donaldson Lufkin & Jenrette Securities Corp., Salomon Brothers Inc. and Citicorp were the underwriters on the sale.

OrNda will use some proceeds from the sale to finance its recent $145-million acquisition of Fountain Valley Regional Hospital and Medical Center.