New Issue: HCA prices $500 million seven-year bullet notes at par to yield 8%

By Paul A. Harris

Portland, Ore., Sept. 27 - HCA Inc. priced a $500 million issue of non-callable seven-year senior notes (B3/B-) at par to yield 8% on Tuesday, according to an informed source.

The yield printed at the tight end of the 8% to 8¼% price talk.

Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC were the joint bookrunners for the quick-to-market issue.

Proceeds will be used for general corporate purposes including funding a portion of the acquisition of the remaining ownership interest in the HCA-HealthONE LLC joint venture currently owned by the Colorado Health Foundation.

HCA is a Nashville-based operator of acute care, psychiatric and rehabilitation hospitals.

Issuer:	HCA Inc.
Amount:	$500 million
Maturity:	Oct. 1, 2018
Securities:	Senior notes
Bookrunners:	Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC
Co-managers:	Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., SunTrust Robinson Humphrey, Inc.
Coupon:	8%
Price:	Par
Yield:	8%
Spread:	652 bps
Make-whole call:	Treasuries plus 50 bps
Change of control put:	101%
Trade date:	Sept. 27
Settlement date:	Oct. 3
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	SEC registered
Price talk:	8% to 8¼%
Marketing:	Quick-to-market

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