CORAL GABLES, Fla., Nov. 2 /PRNewswire/ -- Ramsay Health Care, Inc.
(Nasdaq: RHCI) announced today a private placement of $3.5 million of common
stock and a partial recapitalization which will result in the Company
increasing net worth by approximately $8.9 million.
The private placement, which closed on October 30, 1998, consisted of the
purchase by Luis E. Lamela, the Chief Executive Officer of the Corporation, of
$1,000,000 of shares of common stock, the purchase by a corporate affiliate of
Paul J. Ramsay, the Chairman of the Corporation, of $540,000 of shares of
common stock, and the purchase by unaffiliated third parties of an aggregate
of $1,960,000 of shares of common stock, all at a purchase price of $1 1/8 per
share (the closing bid price on October 26, 1998, the date of the subscription
agreements).
The partial recapitalization will consist of the exchange of approximately
$4.4 million of outstanding shares of Series 1997-A Preferred Stock including
accrued dividends, and $1 million of subordinated indebtedness held by a
corporate affiliate of Mr. Ramsay, for shares of the Corporation's common
stock also valued at $1 1/8 per share. The partial recapitalization is
subject to the expiration of the waiting period under the Hart-Scott-Rodino
Antitrust Improvement Act and other customary conditions.
The foregoing securities have not been registered under the Securities Act
of 1933, as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from registration requirements.
SOURCE Ramsay Health Care, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/116733.html or fax,
800-758-5804, ext. 116733
CONTACT:
Isa Diaz, Vice President Corporate Relations,
Ramsay Health Care, Inc., 305-569-4626
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