By Paul A. Harris
St. Louis, Nov. 16 - HCA Inc. priced a $1.25 billion off-the-shelf issue of high-yield bonds (Ba2/BB+) on Wednesday in two tranches, according to an informed source.
The company sold $500 million of five-year senior notes at 99.707 with a 5½% coupon to yield 5.567%, or 200 basis points over Treasuries. Price talk was the 200 basis point area.
Merrill Lynch & Co. and JP Morgan were joint bookrunners.
HCA also sold $750 million of senior notes due Jan. 15, 2015 at 99.671 with a 6 3/8% coupon to yield 6.421%, or 220 basis points over Treasuries. Price talk was the 225 basis point area.
JP Morgan and Merrill Lynch & Co. ran the books.
The company will also obtain a $2.5 billion bank loan.
The Nashville, Tenn.-based hospital operator plans to use proceeds to repay the bridge loan incurred to fund an offer to repurchase up to 61 million of its common shares (approximately $2.25 billion based on Oct. 13 share price of $37).
| Issuer: | HCA Inc.
|
| Amount: | $1.25 billion
|
| Pricing date: | Nov. 16
|
| Settlement date: | Nov. 19
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
|
|
| Five-year tranche
|
| Amount: | $500 million
|
| Maturity: | Dec. 1, 2009
|
| Security description: | Senior notes
|
| Bookrunners: | Merrill Lynch & Co., JP Morgan
|
| Coupon: | 5½%
|
| Price: | 99.707
|
| Yield: | 5.567%
|
| Spread: | 200 basis points
|
| Call protection: | Make-whole call at Treasuries plus 30 basis points
|
| Price talk: | 200 basis point area
|
|
|
| 10-year tranche
|
| Amount: | $750 million
|
| Maturity: | Jan. 15, 2015
|
| Bookrunners: | JP Morgan, Merrill Lynch & Co.
|
| Security description: | Senior notes
|
| Coupon: | 6 3/8%
|
| Price: | 99.671
|
| Yield: | 6.421%
|
| Spread: | 220 basis points
|
| Call protection: | Make-whole call at Treasuries plus 35 basis points
|
| Price talk: | 225 basis point area
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
