By Cristal Cody
Chicago, March 3 – HCA Healthcare Inc. subsidiary HCA Inc. priced $6 billion of notes (Baa3/BBB-/BBB-) in five parts, according to an 8-K filed with the Securities and Exchange Commission.
The parent is guaranteeing the notes with subsidiary guarantors.
The detailed terms of the sale were the following:
• $1 billion of 3.125% senior secured notes due 2027 at 99.202, with a spread of Treasuries plus 140 basis points that came 25 bps low to talk;
• $500 million of 3.375% senior secured notes due 2029 at 98.83, with a spread of Treasuries plus 160 bps, that came 30 bps low to talk;
• $2 billion of 3.625% senior secured notes due 2032 at 98.363, with a spread of Treasuries plus 185 bps that priced 25 bps low to talk;
• $500 million of 4.375% senior secured notes due 2042 at 97.551, with a spread of Treasuries plus 215 bps that priced 30 bps low to talk; and
• $2 billion of 4.625% senior secured notes due 2052 at 99.027, with a spread of Treasuries plus 235 bps that came 25 bps low to talk.
Citigroup Global Markets Inc., BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC led the Rule 144A and Regulation S transaction.
The notes will be used for refinancing transactions. The company said that it will redeem all $1.25 billion outstanding of its 4.75% senior secured notes due 2023 and the rest of the proceeds will be used for general corporate purposes, which may include the repayment of other borrowings under its senior secured asset-based revolver and the redemption of all or a portion of its 5.875% senior notes due 2023.
HCA is a Nashville-based health care services provider.
| Issuer: | HCA Inc.
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| Guarantor: | HCA Healthcare Inc.
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| Amount: | $6 billion
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| Issue: | Senior secured notes
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| Bookrunners: | Citigroup Global Markets Inc., BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
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| Senior co-managers: | Barclays, Capital One Securities, Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC
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| Co-managers: | Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., Scotia Capital (USA) Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., MUFG, PNC Capital Markets LLC and Regions Securities LLC
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| Trustee: | Delaware Trust Co.
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| Counsel to issuer: | Cleary Gottlieb Steen & Hamilton LLP
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| Counsel to underwriters: | Cahill Gordon & Reindel LLP
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| Trade date: | March 2
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| Settlement date: | March 9
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | Rule 144A and Regulation S
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|
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| 2027 notes
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| Amount: | $1 billion
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| Maturity: | March 15, 2027
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| Coupon: | 3.125%
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| Price: | 99.202
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| Spread: | Treasuries plus 140 bps
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| Price talk: | Treasuries plus 165 bps area
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|
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| 2029 notes
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| Amount: | $500 million
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| Maturity: | March 15, 2029
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| Coupon: | 3.375%
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| Price: | 98.83
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| Spread: | Treasuries plus 160 bps
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| Price talk: | Treasuries plus 190 bps area
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|
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| 2032 notes
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| Amount: | $2 billion
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| Maturity: | March 15, 2032
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| Coupon: | 3.625%
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| Price: | 98.363
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| Spread: | Treasuries plus 185 bps
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| Price talk: | Treasuries plus 210 bps area
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|
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| 2042 notes
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| Amount: | $500 million
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| Maturity: | March 15, 2042
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| Coupon: | 4.375%
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| Price: | 97.551
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| Spread: | Treasuries plus 215 bps
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| Price talk: | Treasuries plus 245 bps area
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|
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| 2052 notes
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| Amount: | $2 billion
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| Maturity: | March 15, 2052
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| Coupon: | 4.625%
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| Price: | 99.027
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| Spread: | Treasuries plus 235 bps
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| Price talk: | Treasuries plus 260 bps area
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