DECATUR, Texas, Feb. 22, 2017 /PRNewswire/ -- Decatur Hospital Authority, a body corporate and political subdivision or the State of Texas ("DHA"), announced today that they have extended the expiration date for the solicitation of consents (the "Consent Solicitation") from holders of the DHA's Hospital Revenue Bonds (Wise Regional Health System) Series 2013A and 2014A in the outstanding aggregate principal amount of $112,725,000 (the "Bonds") (CUSIP Numbers: 243323BM3; 243323BN1; 243323BP6; 243323BQ4; 243323BR2; 243323BS0; 243323BT8; 243323BU5; 243323BV3; 243323BW1; and 243323BX9), which is being conducted pursuant to terms contained in the Consent Solicitation Statement, dated February 14, 2017 (the "Consent Solicitation Statement"). The Consent Solicitation was originally set to expire at 5:00 p.m. on February 21, 2017. DHA hereby announces that the Consent Solicitation will now be open for the receipt of consents by way of the Letter of Consent (the "Letter of Consent") until 5:00 p.m., New York Time, on March 1, 2017 (the "Amended Expiration Date"). All references in the Consent Solicitation Statement and the Letter of Consent to the Expiration Date shall now be deemed to be references to the Amended Expiration Date.
In the past few years DHA has entered into several leases and assumed the licenses and the Medicare and Medicaid provider agreements for various nursing facilities in order to enhance the long-term care in communities in the service area of DHA and these leases allow DHA and the nursing facilities to participate in the Nursing Facility Minimum Payment Amounts Program (the "NFMPAP") and receive enhanced funding. While the NFMPAP ended on August 31, 2016, it is anticipated that NFMPAP will be replaced by a new payment program known as the Quality Incentive Payment Program in September of 2017. While DHA is participating in these programs, the expenses attributable to the nursing facilities have begun to negatively affect DHA's liquidity ratios under its Existing Indenture although such expenses do not adversely affect DHA's actual operations.
DHA is undertaking the Consent Solicitation to amend its liquidity ratio calculation to exclude the operating expenses directly attributable to any current or future nursing home facilities.
Any holder of Bonds who has previously delivered a consent pursuant to the Consent Solicitation Statement does not need to redeliver such consent or take any other action. Any holder of Bonds who has not yet delivered a consent should follow the instructions set forth in the Consent Solicitation Statement, and may use the previously distributed Letter of Consent for purposes of delivering its consent.
Except as described in this press release, all other terms described in the Consent Solicitation Statement remain unchanged. Holders of the Bonds are urged to review the Consent Solicitation Statement and the related Letter of Consent for the detailed terms of the Consent Solicitation and the procedures for providing consent.
The Consent Solicitation is being made solely on the terms and subject to the conditions set forth in the Consent Solicitation Statement. DHA may, in its sole discretion, terminate, further extend or amend the Consent Solicitation at any time, as described in the Consent Solicitation Statement.
Questions concerning the terms of the Consent Solicitation should be directed to Todd Scroggins, Chief Financial Officer of DHA at (940) 626-1228 or by email to [email protected]. Requests for assistance in completing and delivering the Letter of Consent or requests for additional copies of the Consent Solicitation Statement, the Letter of Consent or other related documents should be directed to D.F. King & Co., Inc. (the "Information Agent"), at (212) 269-5550 or (800) 431-9633 (toll-free) or by email at [email protected] or in writing at 48 Wall Street, 22nd Floor, New York, New York 10005, Attention: Andrew Beck.
Important Notice
This press release is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy any security. This announcement must be read in conjunction with the Consent Solicitation Statement and the Consent Letter. None of DHA, Wells Fargo Bank, N.A., the current trustee, or the Information Agent make any recommendation as to whether or not holders of the Bonds should provide consents to the amendments pursuant to the Consent Solicitation. Holders of the Bonds should not construe the contents of this press release, the Consent Solicitation Statement or any related materials as legal, business or tax advice. Each holder of the Bonds should consult its own attorney, business advisor and tax advisor as to legal, business, tax and related matters concerning the Consent Solicitation.
The Consent Solicitation is not being made to, and consents will not be accepted from or on behalf of, a holder of the Bonds in any jurisdiction in which the making of the Consent Solicitation or the acceptance thereof would not be in compliance with the laws of such jurisdiction. However, DHA may in their sole discretion take such action as they may deem necessary to lawfully make the Consent Solicitation in any such jurisdiction and to extend the Consent Solicitation to any holder of the Bonds in such jurisdiction.
THE CONSENT SOLICITATION STATEMENT (INCLUDING THE DOCUMENTS INCORPORATED BY REFERENCE THEREIN) AND THE LETTER OF CONSENT CONTAIN IMPORTANT INFORMATION THAT SHOULD BE READ BEFORE ANY DECISION IS MADE WITH RESPECT TO THE CONSENT SOLICITATION.
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In the past few years DHA has entered into several leases and assumed the licenses and the Medicare and Medicaid provider agreements for various nursing facilities in order to enhance the long-term care in communities in the service area of DHA and these leases allow DHA and the nursing facilities to participate in the Nursing Facility Minimum Payment Amounts Program (the "NFMPAP") and receive enhanced funding. While the NFMPAP ended on August 31, 2016, it is anticipated that NFMPAP will be replaced by a new payment program known as the Quality Incentive Payment Program in September of 2017. While DHA is participating in these programs, the expenses attributable to the nursing facilities have begun to negatively affect DHA's liquidity ratios under its Existing Indenture although such expenses do not adversely affect DHA's actual operations.
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DHA is undertaking the Consent Solicitation to amend its liquidity ratio calculation to exclude the operating expenses directly attributable to any current or future nursing home facilities.
Any holder of Bonds who has previously delivered a consent pursuant to the Consent Solicitation Statement does not need to redeliver such consent or take any other action. Any holder of Bonds who has not yet delivered a consent should follow the instructions set forth in the Consent Solicitation Statement, and may use the previously distributed Letter of Consent for purposes of delivering its consent.
Except as described in this press release, all other terms described in the Consent Solicitation Statement remain unchanged. Holders of the Bonds are urged to review the Consent Solicitation Statement and the related Letter of Consent for the detailed terms of the Consent Solicitation and the procedures for providing consent.
The Consent Solicitation is being made solely on the terms and subject to the conditions set forth in the Consent Solicitation Statement. DHA may, in its sole discretion, terminate, further extend or amend the Consent Solicitation at any time, as described in the Consent Solicitation Statement.
Questions concerning the terms of the Consent Solicitation should be directed to Todd Scroggins, Chief Financial Officer of DHA at (940) 626-1228 or by email to [email protected]. Requests for assistance in completing and delivering the Letter of Consent or requests for additional copies of the Consent Solicitation Statement, the Letter of Consent or other related documents should be directed to D.F. King & Co., Inc. (the "Information Agent"), at (212) 269-5550 or (800) 431-9633 (toll-free) or by email at [email protected] or in writing at 48 Wall Street, 22nd Floor, New York, New York 10005, Attention: Andrew Beck.
Important Notice
This press release is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy any security. This announcement must be read in conjunction with the Consent Solicitation Statement and the Consent Letter. None of DHA, Wells Fargo Bank, N.A., the current trustee, or the Information Agent make any recommendation as to whether or not holders of the Bonds should provide consents to the amendments pursuant to the Consent Solicitation. Holders of the Bonds should not construe the contents of this press release, the Consent Solicitation Statement or any related materials as legal, business or tax advice. Each holder of the Bonds should consult its own attorney, business advisor and tax advisor as to legal, business, tax and related matters concerning the Consent Solicitation.
The Consent Solicitation is not being made to, and consents will not be accepted from or on behalf of, a holder of the Bonds in any jurisdiction in which the making of the Consent Solicitation or the acceptance thereof would not be in compliance with the laws of such jurisdiction. However, DHA may in their sole discretion take such action as they may deem necessary to lawfully make the Consent Solicitation in any such jurisdiction and to extend the Consent Solicitation to any holder of the Bonds in such jurisdiction.
THE CONSENT SOLICITATION STATEMENT (INCLUDING THE DOCUMENTS INCORPORATED BY REFERENCE THEREIN) AND THE LETTER OF CONSENT CONTAIN IMPORTANT INFORMATION THAT SHOULD BE READ BEFORE ANY DECISION IS MADE WITH RESPECT TO THE CONSENT SOLICITATION.
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SOURCE Decatur Hospital Authority
