Published on 12/3/2015 in the Prospect News High Yield Daily.
New Issue: HCA prices $500 million tap of 5 7/8% notes due 2026 at 100.25 to yield 5.837%
By Paul A. Harris
Portland, Ore., Dec. 3 – HCA Inc. priced a $500 million add-on to its 5 7/8% senior bullet notes due Feb. 15, 2026 (B1//BB) at 100.25 to yield 5.837% on Thursday, according to an informed source.
The reoffer price came in line with the 100 to 101 price talk.
The deal was marketed via an internet roadshow. There was no investor call.
Barclays was the lead left bookrunner. BofA Merrill Lynch, 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-based for-profit operator of health care facilities plans to use the proceeds for general corporate purposes.
| Issuer: | HCA Inc.
|
| Size: | $500 million
|
| Proceeds: | $501.25 million
|
| Maturity: | Feb. 15, 2026
|
| Security description: | Add-on to 5 7/8% senior notes due Feb. 15, 2026
|
| Lead left bookrunner: | Barclays
|
| Joint bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co., RBC Capital Markets, SunTrust Robinson Humphrey Inc., UBS Investment Bank, Wells Fargo Securities LLC
|
| Co-managers: | Credit Agricole CIB, Mizuho Securities, Fifth Third Bank, SMBC Nikko (co's)
|
| Coupon: | 5 7/8%
|
| Price: | 100.25
|
| Yield to maturity: | 5.837%
|
| Call: | Make-whole call at Treasuries plus 50 bps until six months prior to maturity, then callable at par
|
| Trade date: | Dec. 3
|
| Settlement date: | Dec. 8 with accrued interest
|
| Ratings: | Moody's: B1
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| Fitch: BB
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| Distribution: | SEC registered
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| Price talk: | 100 to 101
|
| Marketing: | Quick to market
|
| Original issue: | $1 billion priced at par on Nov. 9, 2015
|
| Fungibility: | Add-on notes become immediately fungible with original notes
|
| Total issue size: | $1.5 billion
|
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