TUCSON, Ariz., Nov. 6 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today announced the completion of a private placement of $70 million of Convertible Senior Subordinated Notes due in 2014.
RBC Capital Markets acted as the Sole Placement Agent for the transaction.
The private placement was priced off today's closing price of $31.47. The notes bear interest at 6.5% per annum and are convertible into Providence common shares at a conversion price of $41.698, a 32.5% premium. The net cash proceeds of this offering will be placed in escrow and will be released to the seller upon the closing of the LogistiCare acquisition, also announced today.
Private investors, under signed confidentially and no-trade agreements, were provided with the attached PowerPoint presentation in order to evaluate the transaction. Pursuant to Regulation FD (Full Disclosure) the verbatim presentation can be seen at http://investor.provcorp.com/phoenix.zhtml?c=145700&p=irol-IRHome
Providence Service Corporation, through its owned and managed entities, provides home and community based social services to government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections. Providence operates no beds, treatment facilities, hospitals, or group homes preferring to provide services in the client's own home or other community setting. Through its owned and managed entities, Providence maintains 773 government contracts in 35 states and the District of Columbia as of September 30, 2007.
Certain statements herein, such as any statements about Providence's confidence or strategies or its expectations about revenues, results of operations, profitability, earnings per share, contracts, collections, award of contracts, acquisitions and related growth, growth resulting from initiatives in certain states, effective tax rate or market opportunities, constitute "forward-looking statements" within the meaning of the private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause Providence's actual results or achievements to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, reliance on government-funded contracts, risks associated with government contracting, risks involved in managing government business, legislative or policy changes, challenges resulting from growth or acquisitions, adverse media and legal, economic and other risks detailed in Providence's filings with the Securities and Exchange Commission. Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should" and "likely" and similar expressions identify forward- looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Providence undertakes no obligation to update any forward-looking statement contained herein.
|SOURCE Providence Service Corporation|
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