New Issue: HCA $1 billion 10-year notes price to yield Treasuries plus 200 bps

By Paul A. Harris

St. Louis, Feb. 3 - HCA Inc. priced a $1 billion issue of 6½% 10-year senior notes (Ba2/BB+) at 99.57 on Friday to yield 6.559%, according to an informed source.

The issue came at a spread to Treasuries of 200 basis points, on top of the price talk.

Citigroup, Banc of America Securities LLC, Deutsche Bank Securities, JP Morgan, Merrill Lynch & Co. and Wachovia Securities were joint bookrunners for the registered notes. The co-managers were Scotia Capital, SunTrust Robinson Humphrey, BNY Securities, KeyBank and Calyon Securities.

Proceeds will be used to pay down about $625 million on HCA's $1 billion interim term loan, with the balance to reduce amounts outstanding under its $1.75 billion revolving credit facility.

The issuer is a Nashville, Tenn., hospital management company.

Issuer:	HCA Inc.
Amount:	$1 billion
Maturity:	Feb. 15, 2016
Security description:	Senior notes
Bookrunners:	Citigroup, Banc of America Securities LLC, Deutsche Bank Securities, JP Morgan, Merrill Lynch & Co., Wachovia Securities
Co-managers:	Scotia Capital, SunTrust Robinson Humphrey, BNY Securities, KeyBank, Calyon Securities
Coupon:	6½%
Price:	99.57
Yield:	6.559%
Spread:	200 basis points
Call protection:	Make-whole call at Treasuries plus 30 basis points
Trade date:	Feb. 3
Settlement date:	Feb. 8
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+
Distribution:	SEC Registered
Price talk:	Treasuries plus 200 basis points

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.