Published on 2/7/2012 in the Prospect News High Yield Daily.
New Issue: HCA upsizes to $1.35 billion, prices 10-year bullet notes at par to yield 5 7/8%
By Paul A. Harris
Portland, Ore., Feb. 7 - HCA Inc. priced a massively upsized $1.35 billion issue of non-callable 10-year first-lien senior secured notes (Ba3/BB/) at par to yield 5 7/8% on Tuesday, according to syndicate sources.
The yield printed on top of price talk.
Goldman Sachs & Co. was the left bookrunner for the quick-to-market issue, which was upsized from $750 million.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays Capital Inc., Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
The Nashville-based health care company plans to use the proceeds to fund a special cash dividend of $2.00 per share and for general corporate purposes.
| Issuer: | HCA Inc.
|
| Amount: | $1.35 billion, increased from $750 million
|
| Maturity: | March 15, 2022
|
| Securities: | First-lien senior secured notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays Capital Inc., Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | Credit Agricole CIB, RBC Capital Markets, SunTrust Robinson Humphrey
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Spread: | 392 bps
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Trade date: | Feb. 7
|
| Settlement date: | Feb. 16
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 5 7/8% area
|
| Marketing: | Quick to market
|
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