Westworld Community Healthcare Inc., a fast-growing, Lake Forest company specializing in rural health care services, Tuesday said that to fuel its growth, it plans to make its first public offering of subordinated notes.
In a filing with the Securities and Exchange Commission, Westworld said it will offer $30 million in notes due March 1, 1995. It also intends to offer for sale 348,968 shares of Westworld's 3.5-million shares of common stock. The shares are held by about 45 different shareholders who want to sell their stock.
Michael Dunn, chairman and chief executive officer, said net proceeds of the note offering will be used to repay bank debt and establish the company's rural health maintenance organization, called Westcare. Funds raised also will be used to acquire additional health facilities, for working capital and for general corporate purposes.
Dunn said in a telephone interview that the company agreed to help investors sell their shares because, "There is very little public flow of our stock and it's difficult for institutions to accumulate it."
Drexel Burnham Lambert Inc. is the sole underwriter for the note offering. Sanford C. Bernstein & Co. Inc. will co-manage the stock offering.
Since 1982, Westworld has acquired or agreed to acquire 24 hospital operations in rural communities. It also operates two alcoholism treatment facilities.