Shearman & Sterling represented the initial purchasers led by Morgan Stanley & Co. LLC in connection with Prospect Medical Holdings, Inc.’s offering of $325 million of its 8.375% Senior Secured Notes due 2019.

Shearman & Sterling also advised Morgan Stanley Senior Funding, Inc. as sole lead arranger and sole book manager in connection with a $50 million credit facility for Prospect. Both the Notes and the credit facility are secured by mortgages on seven hospitals in California and Texas, as well as substantially all of the other assets of Prospect and its subsidiaries.

In addition, Shearman & Sterling represented Morgan Stanley & Co. LLC as dealer manager in connection with Prospect’s tender offer for all of its outstanding 12¾% Senior Secured Notes due 2014.

Prospect is a provider of quality, cost-efficient and coordinated healthcare services through its hospitals, clinics, and physician networks in Southern California and San Antonio, Texas.

The following Shearman & Sterling attorneys advised in the transactions: partners John D. Wilson (San Francisco-Capital Markets), Steven E. Sherman (New York-Finance), and Larry Crouch (Palo Alto-Tax); counselBrad D. Kern (San Francisco-Capital Markets), Jung-Kyu McCann (Palo Alto-Capital Markets), Sanjay Thapar (New York-Finance), Paul Balaam(London-Real Estate), and Eileen O’Pray (Palo Alto-Tax); and associates Nathan Wood (Palo Alto-Finance), Nathan Mee (San Francisco-Capital Markets), Elise Corey (San Francisco-Capital Markets), Eric Naftel (Palo Alto-Tax) and Warda Shazadi (New York-Real Estate).

www.shearman.com