Published on 3/2/2010 in the Prospect News High Yield Daily.
New Issue: HCA sells upsized $1.4 billion 7¼% 10.5-year notes to yield 7 3/8%
By Paul A. Harris
St. Louis, March 2 - HCA, Inc. priced an upsized $1.4 billion issue of 7¼% 10.5-year senior secured first-lien notes (Ba3/BB/) at 99.095 to yield 7 3/8% on Tuesday, according to an informed source.
The yield printed on top of price talk.
Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Wells Fargo Securities were joint bookrunners for the issue, which was upsized from $1 billion.
Co-managers were Credit Agricole, Credit Suisse, Daiwa Securities America Inc., Mizuho Securities USA Inc., Morgan Stanley & Co., RBC Capital Markets Corp. and RBS Securities Inc.
Proceeds will be used to repay a portion of the term loans outstanding under the company's senior secured credit facility.
HCA is a Nashville-based owner and operator of hospitals and surgery centers.
| Issuer: | HCA, Inc.
|
| Amount: | $1.4 billion, increased from $1 billion
|
| Maturity: | Sept. 15, 2020
|
| Securities: | Senior secured first-lien notes
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Wells Fargo Securities
|
| Co-managers: | Credit Agricole, Credit Suisse, Daiwa Securities America Inc., Mizuho Securities USA Inc., Morgan Stanley & Co., RBC Capital Markets Corp., RBS Securities Inc.
|
| Coupon: | 7¼%
|
| Price: | 99.095
|
| Yield: | 7 3/8%
|
| Spread: | 377 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until March 15, 2015, then callable at a premium
|
| Trade date: | March 2
|
| Settlement date: | March 10
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A
|
| Price talk: | 7 3/8% area
|
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