HCA $5.7 billion bond deal expected to launch next week

By Paul A. Harris

St. Louis, Oct. 24 - Hercules Holding II, LLC (HCA Inc.) is expected to launch bond offerings totaling $5.7 billion next week, according to an informed source.

The Rule 144A deal is expected to include $4.2 billion of senior secured second-lien notes with expected maturities in 2014 and in 2016 and $1.5 billion senior second-lien toggle notes expected to mature in 2016, which will pay in kind for the first five years.

The company will also put in place a $16.80 billion credit facility via Bank of America, Citigroup, JPMorgan, Merrill Lynch, Deutsche Bank and Wachovia Securities.

Proceeds will be used to help fund the leveraged buyout of the company by Bain Capital, Kohlberg Kravis Roberts & Co., Merrill Lynch Global Private Equity and company founder Thomas F. Frist Jr.

Hercules Holding was formed in connection with the merger.

HCA is a Nashville health care services company.

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