By Paul A. Harris
St. Louis, Feb. 11 - HCA Inc. priced a $310 million issue of 9 7/8% eight-year senior secured second-priority notes (B2/BB-/B+) at 96.673 to yield 10½% in a quick-to-market Wednesday transaction, according to an informed source.
The deal came on top of price talk.
Banc of America Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Wachovia Securities LLC were joint bookrunners for the Rule 144A with registration rights and Regulation S issue, which generated $299.69 million of proceeds.
The co-managers were Barclays Capital Inc., Credit Suisse, Deutsche Bank Securities Inc., Goldman Sachs & Co. and Kohlberg Kravis Roberts & Co.
The notes are guaranteed on a senior secured basis by each subsidiary that guarantees HCA's senior secured credit facilities, other than certain subsidiaries which guarantee only HCA's asset-based revolver.
Proceeds will be used to repay debt, which may include borrowings under HCA's term loan, revolver and/or asset-based senior secured credit facilities. To the extent that proceeds from the offering are not used to repay obligations under HCA's senior secured credit facilities, they may used to repay other existing senior unsecured debt.
The issuer is a Nashville-based health care services provider.
| Issuer: | HCA Inc.
|
| Face amount: | $310 million
|
| Proceeds: | $299.69 million (approximate)
|
| Maturity: | Feb. 15, 2017
|
| Security description: | Senior secured second-priority notes
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Wachovia Securities
|
| Co-managers: | Barclays Capital, Credit Suisse, Deutsche Bank Securities Inc., Goldman Sachs & Co., Kohlberg Kravis Roberts & Co.
|
| Coupon: | 9 7/8%
|
| Price: | 96.673
|
| Yield: | 10½%
|
| Spread: | 789 bps
|
| Call features: | Callable on Feb. 15, 2013 at 104.938, 102.469, par on and after Feb. 15, 2015
|
| Equity clawback: | Until Feb. 15, 2012 for 35% at 109.875
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 11
|
| Settlement date: | Feb. 19
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: BB-
|
| Fitch: B+
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 10½% area
|
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