HCA brings benchmark offering of split-rated 30-year secured bullet via Citigroup; pricing Thursday

By Paul A. Harris

Portland, Ore., June 8 – HCA Inc. plans to price a benchmark split-rated issue of 30-year senior secured bullet notes (assumed ratings Ba1/BBB-/BB+) on Thursday trailing a mid-morning conference call with investors, according to market sources.

Initial guidance has the deal shaping up to yield in the 5½% area, an investor said.

Citigroup Global Markets Inc. is the lead left bookrunner for the public offering that is set to receive a high-yield execution. Barclays, BofA Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SMBC Nikko, SunTrust Robinson Humphrey Inc., UBS Investment Bank and Wells Fargo Securities LLC are the joint bookrunners.

Mizuho Securities, Fifth Third Bank, MUFG and Regions are the co-managers.

The notes feature a make-whole call at Treasuries plus 50 bps and become callable six months prior to maturity, but they are otherwise non-callable. They also feature a 101% poison put.

The Nashville, Tenn.-based for-profit operator of health care facilities plans to use the proceeds for general corporate purposes, including announced acquisitions.

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