Published on 5/6/2015 in the Prospect News High Yield Daily.
New Issue: HCA sells $1.6 billion tap of 5 3/8% senior notes due 2025 at 103 to yield 4.98%
By Paul A. Harris
Portland, Ore., May 6 – HCA Inc. priced a $1.6 billion add-on to its 5 3/8% non-callable senior notes due Feb. 1, 2025 (B2/B+/BB-) at 103 to yield 4.98% on Wednesday, according to a syndicate source.
The reoffer price came at the cheap end of the 103 to 103.25 price talk.
Citigroup Global Markets Inc. was the left bookrunner for the public offering. Barclays, BofA Merrill Lynch, 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 the 7¾% HoldCo notes due 2021.
| Issuer: | HCA Inc.
|
| Face amount: | $1.6 billion
|
| Proceeds: | $1.65 billion
|
| Maturity: | Feb. 1, 2025
|
| Security description: | Add-on to 5 3/8% senior notes due Feb. 1, 2025
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Barclays, BofA Merrill Lynch, 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 Bank, Mizuho Securities, SMBC Nikko
|
| Coupon: | 5 3/8%
|
| Price: | 103
|
| Yield: | 4.98%
|
| Spread: | 274 bps
|
| Call protection: | Non-callable
|
| Trade date: | May 6
|
| Settlement date: | May 20 with accrued interest
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Fitch: BB-
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| Distribution: | SEC registered
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| Price talk: | 103 to 103.25
|
| Marketing: | Quick to market
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| Original issue: | $1 billion priced at par on Jan. 13, 2015
|
| Fungibility: | Add-on notes will become immediately fungible with the original notes
|
| Total issue size: | $2.6 billion
|
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