IHS plans $50 million offering
Integrated Health Systems Inc. said yesterday that it filed a plan with the Securities and Exchange Commission to sell $50 million in convertible subordinated debentures. The proceeds will be used for general corporate purposes, including acquiring new geriatric facilities and putting the medical specialty units into existing ones, according to Marc B. Levin, vice president for investor relations.
The bulk of the new offering -- $35.4 million -- will be used to repay outstanding long-term debt, including $25 million borrowed from a new $50 million revolving line of credit with Citibank. The remainder would be available for growth and acquisitions, Mr. Levin said. IHS owns or manages 55 geriatric facilities and 26 medical specialty units nationwide.
Duff downgrades Marriott debt
Duff & Phelps Credit Rating Co. has downgraded Marriott Corp.'s debt securities, assuming the proposed restructuring of the company into Marriott International and Host Marriott is consummated. The senior debt rating, which applies to $1.7 billion in notes and debentures, has been lowered from triple-B to single-B.
Borden cuts 5 ad agencies to 3
Borden Inc., which recently announced a huge consolidation of operations, said yesterday that it was narrowing its roster of advertising agencies for its dairy products and pasta businesses. Borden is cutting to three from five the agencies working on the two lines of business, which include Borden's ice cream, Eagle Brand condensed milk, Creamette pasta and Classico pasta sauce.
The winners in the ad consolidation are Grey Advertising in New York, for dairy products, and CME-KHBB in Minneapolis, for pasta products. The agency MacNamara Klein & Solin in New York retained the domestic pasta sauce assignment. The company plans to make Elsie the Cow more prominent in its new dairy advertising.
Canadian stake in British firm
BCE Inc., Canada's biggest company, said yesterday that it will pay $728.3 million for a 20 percent stake in British telephone service operator Mercury Communications Ltd. The London-based telecommunications giant that owns Mercury, Cable & Wireless PLC, said the investment is part of an alliance between the two companies that also gives C&W; a $45.5 million share in BCE's cable television operations in Britain.
Montreal-based BCE is the parent of Bell Canada and Northern Telecom Ltd. Mercury competes directly with British Telecommunications PLC in Britain.