HCA $5.7 billion three-part deal to begin roadshow Thursday in Europe

By Paul A. Harris

St. Louis, Oct. 25 - Hercules Holding II, the equity consortium that plans to acquire Nashville-based health care services company HCA Inc., will run a Thursday-to-Friday roadshow in Europe for its $5.7 billion three-part bond offering, according to informed sources.

A U.S. roadshow will begin on Tuesday and conclude on Nov. 7, after which the transaction is expected to be priced.

The deal will comprise $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; for the first five years the coupon for the toggle notes may be cash-pay or pay-in-kind at the issuer's discretion.

Citigroup, Banc of America Securities LLC, JP Morgan, Merrill Lynch, Deutsche Bank Securities and Wachovia Securities are joint bookrunners for the notes, which are being marketed via Rule 144A with registration rights and Regulation S.

The company will also put in place a $16.8 billion credit facility.

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

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