By Paul Deckelman
New York, Oct. 31 - HCA Inc. was heard by market sources to have priced a $600 million two-part offering Friday, upsizing the split-rated (Ba1/BBB-) deal from the originally expected $500 million.
The first tranche, of $350 million 5¼% notes maturing on Nov. 6, 2008, priced at 99.709 to yield 5.317%.
The second tranche, of $250 million 7½% notes maturing on Nov. 6, 2033, priced at 99.858 to yield 7.512%, the sources said.
The quickly-shopped offering, which only emerged in the market on Thursday, priced off the investment-grade desks at joint book-running managers Deutsche Bank Securities and Merrill Lynch & Co. Fleet Securities was heard to have been a co-manager.
Nashville-based HCA, the largest U.S. owner and operator of acute-care hospitals, plans to use the proceeds of the offering to pay down bank debt.
| Issuer: | HCA Inc.
|
| Security description: | Notes
|
| Book-running managers: | Deutsche Bank Securities and Merrill Lynch
|
| Ratings: | Moody's: Ba1
|
| S&P: BBB-
|
|
|
| Five-year tranche:
|
| Amount: | $350 million
|
| Maturity: | Nov. 6, 2008
|
| Coupon: | 5¼%
|
| Price: | 99.709
|
| Yield: | 5.317%
|
| Spread: | 208 basis points
|
| Call features: | Non-callable, make-whole call at 30 bps over Treasuries
|
|
|
| Thirty-year tranche:
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| Amount: | $250 million
|
| Maturity: | Nov. 6, 2033
|
| Coupon: | 7½%
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| Price: | 99.858
|
| Yield: | 7.512%
|
| Spread: | 237.5 basis points
|
| Call features: | Non-callable, make-whole call at 37.5 bps over Treasuries
|
|
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