Merge Healthcare Announces Offering of $52 Million Senior Secured Notes

Merge Healthcare Incorporated MRGE announced today that it intends to offer $52 million aggregate principal amount of 11.75% Senior Secured Notes due 2015. The new notes are being offered as additional debt securities under an indenture pursuant to which Merge previously issued $200 million in aggregate principal amount of Senior Secured Notes due 2015, and as supplemented by a supplemental indenture entered into on June 14, 2011 in connection with the previously announced consent solicitation. Merge intends to use the net proceeds of the offering to redeem and retire all of Merge's outstanding Series A Preferred Stock and to pay related fees and expenses. The new notes will be senior secured obligations of Merge and will be guaranteed on a senior basis by all of Merge's domestic restricted subsidiaries. The new notes and the related guarantees will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The new notes and the related guarantees have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.