By Paul A. Harris
St. Louis, April 15 - HCA Inc. priced a massively upsized $1.5 billion issue of 8½% 10-year first-lien senior secured notes (Ba3/BB/) at 96.755 to yield 9% early Wednesday, according to an informed source.
The deal, which was upsized from $500 million, priced on top of the price talk.
The deal went very well, according to an informed source, who added that the notes traded up 1¾ points in the aftermarket.
Citigroup Global Markets Inc., Banc of America Securities LLC, J.P. Morgan Securities Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. were joint bookrunners for the Rule 144A with registration rights deal.
Proceeds will be used to repay term loans under the cash flow credit facility.
Wednesday's $1.5 billion issue was HCA's second secured notes deal in 2009.
On Feb. 11 the Nashville-based health care services provider 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%. Proceeds from that issue were also applied to the company's bank debt.
| Issuer: | HCA Inc.
|
| Amount: | $1.5 billion, increased from $500 million
|
| Maturity: | April 15, 2019
|
| Security description: | Senior secured first-lien notes
|
| Bookrunners: | Citigroup Global Markets Inc., Banc of America Securities LLC, J.P. Morgan Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co.
|
| Coupon: | 8½%
|
| Price: | 96.755
|
| Yield: | 9%
|
| Spread: | 624 bps
|
| Call protection: | Make-whole at Treasuries plus 50 bps, then callable on April 15, 2014 at 104.50, 103.0, 101.50, par on and after April 15, 2017
|
| Equity clawback: | Until April 15, 2012 for 35% at 108.50
|
| Trade date: | April 15
|
| Settlement date: | April 22
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 9% area at a slight discount
|
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