SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 29, 1998
SUN HEALTHCARE GROUP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-12040 85-0410612
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
101 SUN AVENUE, N.E., ALBUQUERQUE, NEW MEXICO 87109
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code (505) 821-3355
NOT APPLICABLE
(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS
On April 29, 1998, Sun Healthcare Group, Inc. ( Sun )
announced that the company has priced two private placements of its
securities. Sun and Sun Financing I, a Delaware statutory business
trust and subsidiary of Sun, priced $300 million ($345 million if
the initial purchasers' over-allotment option is exercised in full)
of convertible trust issued preferred securities having an annual
distribution rate of seven percent and an initial conversion price
of $20.13 per share. Sun also priced $125 million of Senior
Subordinated Notes due 2008 ($150 million if the initial
purchasers' over-allotment option is exercised in full) having an
annual interest rate of 9 percent (but is priced to yield 9.425
percent). The offerings are expected to close May 4, 1998.
Sun intends to use the net proceeds from the offerings to
reduce outstanding borrowings under its senior credit facility.
The offered securities have not been registered under the
Securities Act of 1933, as amended, or any state securities laws,
and may not be offered or sold in the United States absent
registration or qualification or an applicable exemption from
registration or qualification requirements.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
SUN HEALTHCARE GROUP, INC.
By: /s/ William C. Warrick
Name: William C. Warrick
Title: Vice President, Corporate
Controller
Dated: April 29, 1998
