CORAL GABLES, Fla., Dec. 28 /PRNewswire/ -- Ramsay Health Care, Inc.
(Nasdaq: RHCI) announced today the exchange of subordinated indebtedness for
common stock and the conversion of preferred stock into common stock, which
resulted in the Company increasing net worth by approximately $7.0 million.
Part of the transaction consisted of the exchange of approximately $7.0
million of subordinated indebtedness (including accrued interest) held by a
corporate affiliate of Paul J. Ramsay, the Chairman of the corporation, for
shares of common stock valued at $1 11/16 (the closing bid price on December
16, 1998, the date of the agreement). In addition, the corporate affiliate
also converted all of the outstanding shares of Series C and Series 1996
convertible preferred into 3,229,503 shares of common stock.
Commenting on the transition, Luis E. Lamela, Chief Executive Officer of
Ramsay Health Care, Inc. said, "We are very pleased with the completion of
this transaction which strengthens the Company's balance sheet and is
accretive to calendar 1999 forecasted earnings per share."
Paul J. Ramsay, Chairman of the Board, stated, "This transaction reflects
our commitment to and support of the Company. We are excited about the future
prospect of the Company in the youth services industry."
Ramsay Health Care, Inc. is a provider and manager of specialized
education and treatment services for at-risk and troubled youth. The Company
through its youth care division, operates and manages residential treatment
facilities, group homes and services contracts in 8 states and Puerto Rico.
Ramsay's educational division manages five Charter/Contract Schools serving
over 500 students in five counties throughout the State of Florida.
Except for historical information contained herein, the matters set forth
in this news release are forward-looking statements as defined under the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties.
Actual operations and results may differ materially from those expected in the
forward-looking statements made by the Company. Please refer to Ramsay's
filings with the Securities Exchange Commission for additional information.
SOURCE Ramsay Health Care, Inc.
 back to top
Related links:
http://www.ramsay.com
CONTACT:
Isa Diaz, Vice President Corporate Relations,
Ramsay Health Care, Inc., 305-569-4626
|
