Tenet to repay interim loan debts, other expenses with note offerings

By Wendy Van Sickle

Columbus, Ohio, June 2 – Tenet Healthcare Corp. plans to repay the $400 million principal amount outstanding under its interim term loan agreement with some proceeds from a $500 million senior secured note offering.

Meanwhile, THC Escrow Corp. II is planning a $1.9 billion note offering to pay some expenses, Tenet announced in a Tuesday press release.

The proceeds of Tenet’s note, in addition to repaying debt under the March 23 loan agreement, will also be used for general corporate purposes, which may include payment of part of the cash consideration of the company’s purchase of its equity interests in its joint venture with United Surgical Partners International, according to the press release.

THC Escrow Corp. II, a Delaware corporation established to issue notes, will use the proceeds from its sale of senior unsecured notes to pay the cash consideration of the purchase with United Surgical Partners, as well as to pay the cash consideration of the acquisition of 100% of the issued A shares, B1 shares and B2 shares of European Surgical Partners Ltd., to refinance indebtedness of United Surgical Partners and to pay related transaction fees and expenses, the press release said.

Tenet is a Dallas-based health-care services company. United Surgical is a Dallas-based owner and operator of ambulatory surgery centers, surgical hospitals and related businesses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.