Published on 10/7/2014 in the Prospect News High Yield Daily.
New Issue: HCA upsizes to $2 billion, prices secured notes in two bullet tranches
By Paul A. Harris
Portland, Ore., Oct. 7 – HCA Inc. priced an upsized $2 billion offering of non-callable senior secured notes (Ba2//BB+) in two tranches on Tuesday, according to a syndicate source.
The deal included a $600 million tranche of five-year notes that priced at par to yield 4¼%, at the tight end of the 4¼% to 4 3/8% yield talk.
HCA also priced a $1.4 billion tranche of 10.5-year notes at par to yield 5¼%, at the tight end of the 5¼% to 5 3/8% yield talk.
The deal was upsized from $1.5 billion.
BofA Merrill Lynch was the left bookrunner for the public offering.
Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., UBS Investment Bank and Wells Fargo Securities LLC were the joint bookrunners.
The Nashville, Tenn.-based health care services provider plans to use the proceeds to refinance debt and for general corporate purposes.
| Issuer: | HCA Inc.
|
| Amount: | $2 billion, increased from $1.5 billion
|
| Securities: | Non-callable senior secured notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., UBS Investment Bank, Wells Fargo Securities LLC
|
| Co-managers: | Credit Agricole CIB, Fifth Third Securities, Mizuho Securities, SMBC Nikko
|
| Trade date: | Oct. 7
|
| Settlement date: | Oct. 17
|
| Ratings: | Moody's: Ba2
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | Oct. 15, 2019
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 264 bps
|
| Price talk: | 4¼% to 4 3/8%
|
|
|
| 10.5-year notes
|
| Amount: | $1.4 billion
|
| Maturity: | April 15, 2025
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 291 bps
|
| Price talk: | 5¼% to 5 3/8%
|
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