By Paul A. Harris
Portland, Ore., Jan. 13 – HCA Inc. priced an upsized $1 billion issue of non-callable 10-year senior notes (B2/B+/BB-) at par to yield 5 3/8% on Tuesday, according to a syndicate source and an FWP filing with the Securities and Exchange Commission.
The quick-to-market deal was upsized from $750 million.
The yield printed in the middle of the 5¼% to 5½% yield talk.
Wells Fargo Securities LLC was the left bookrunner.
Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and UBS Securities LLC were the joint bookrunners.
The Nashville, Tenn.-based health care services provider plans to use the proceeds to repay $750 million of its 6 3/8% senior notes due 2015 and for general corporate purposes.
The additional $250 million resulting from the upsizing of the deal will be used to increase cash to the balance sheet to be used for general corporate purposes.
| Issuer: | HCA Inc.
|
| Amount: | $1 billion, increased from $750 million
|
| Maturity: | Feb. 1, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., UBS Securities LLC
|
| Co-managers: | Credit Agricole Securities (USA) Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., SMBC Nikko Securities America Inc.
|
| Coupon: | 5 3/8%
|
| Price: | Par
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| Yield: | 5 3/8%
|
| Spread: | 348 bps over Treasuries
|
| Call protection: | Non-callable
|
| Trade date: | Jan. 13
|
| Settlement date: | Jan. 16
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| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Fitch: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 5¼% to 5½%
|
| Marketing: | Quick to market
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