HCA pricing $2 billion 10.5-year bullets in two tranches on Tuesday

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Oct. 16 - HCA Inc. is set to price $2 billion of notes in two tranches on Tuesday, a market source said.

The company is planning a $1 billion issue of non-callable senior secured notes due 2023 (existing ratings Ba3/BB) and a $1 billion tranche of non-callable senior unsecured notes due 2023 (existing ratings B3/B-).

An investor was scheduled for 11 a.m. ET on Tuesday.

Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and UBS Securities LLC are the senior co-managers.

Fifth Third Securities Inc. and SMBC are the co-managers.

The notes are Securities and Exchange Commission registered, and both tranches have make-whole calls at Treasuries plus 50 bps.

The Nashville-based hospital operator will use proceeds for general corporate purposes, which may include the repayment of HCA's existing term loan B-1 facility due November 2013 and the financing of a dividend to stockholders of HCA Holdings, Inc.

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