Northstar Healthcare Closes Currency Hedges
TORONTO, ON and HOUSTON, TX, Sept. 17 /CNW/ - Northstar Healthcare Inc. (TSX:NHC) today announced that it has closed out its position in foreign currency exchange contracts, thereby eliminating any future financial risk related to changes in the value of the Canadian dollar versus the US dollar.
Northstar entered into the contracts at the time of the Company's initial public offering, in order to hedge currency exposure which could arise from the payment of Canadian dollar dividends on its common shares, while the Company's revenues are generated in United States dollars.
The hedge is no longer required and represented a potential liability that now has been eliminated. It also removes the required recognition of unrealized gains or losses resulting from differences between the Canadian and US dollar foreign exchange spot rates and the exchange rate under the Company's currency instruments.
In closing out its contracts, Northstar will realize a one-time loss of approximately $0.3 million.
About Northstar Healthcare Inc.
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Northstar owns and/or manages ambulatory surgery centres in the United States, focusing initially on Houston and other metropolitan areas in Texas. The Company currently holds interests in two ambulatory surgery centres in Houston - a 70% partnership interest in The Palladium for Surgery - Houston and a 60% partnership interest in Medical Ambulatory Surgical Suites. In addition, Northstar manages an ambulatory surgery centre in Dallas.
Northstar was founded and sponsored by Donald Kramer, M.D. and Stewart A. Feldman. Mr. Feldman also served as the co-principal and Chairman and Chief Executive Officer of Healthcare Ventures, Ltd., which sponsored Northstar, with Dr. Kramer serving as its President.
Forward-looking statements
