Published on 3/1/2016 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: HCA prices upsized $1.5 billion 10-year secured bullet notes at par to yield 5¼%
By Paul A. Harris
Portland, Ore., March 1 – HCA Inc. priced an upsized $1.5 billion issue of 10-year first-lien senior secured notes (Ba1/BBB-/BB+) at par to yield 5¼% on Tuesday, according to a syndicate source.
The issue size was increased from $1 billion as $500 million of proceeds were shifted from the concurrent term loan, downsizing the loan to $1.5 billion from $2 billion.
The yield printed at the tight end of the 5¼% to 5 3/8% yield talk. Initial guidance came in the 5 3/8% area.
BofA Merrill Lynch 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, Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., UBS Investment Bank and Wells Fargo Securities LLC were the joint bookrunners.
HCA Inc. is a wholly owned subsidiary of HCA Holdings, Inc., a Nashville, Tenn.-based for-profit operator of health care facilities.
Proceeds will be used for general corporate purposes.
| Issuer: | HCA Inc., a wholly owned subsidiary of HCA Holdings, Inc.
|
| Amount: | $1.5 billion, increased from $1 billion
|
| Maturity: | June 15, 2026
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| Securities: | First-lien senior secured notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Barclays, 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, Wells Fargo Securities LLC
|
| Co-managers: | Credit Agricole CIB, Mizuho Securities, Fifth Third Securities, SMBC Nikko
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 342 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until six months prior to maturity, then callable at par, otherwise non-callable
|
| Trade date: | March 1
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| Settlement date: | March 15
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| Ratings: | Moody's: Ba1
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| Standard & Poor’s: BBB-
|
| Fitch: BB+
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| Distribution: | SEC registered
|
| Price talk: | 5¼% to 5 3/8% (initial guidance 5 3/8% area)
|
| Marketing: | Quick to market
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