Published on 6/8/2017 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: HCA prices $1.5 billion split-rated 30-year secured bullet at par to yield 5½%
By Paul A. Harris
Portland, Ore., June 8 – HCA Inc. priced a $1.5 billion split-rated issue of 30-year senior secured bullet notes (Ba1/BBB-/BB+) at par to yield 5½% on Thursday, according to market sources.
The yield printed on top of yield talk in the 5½% area. Initial guidance was also in the 5½% area.
Citigroup Global Markets Inc. was the lead left bookrunner for the Securities and Exchange Commission-registered deal that came as a drive-by offering in a high-yield execution.
Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.
The Nashville, Tenn.-based for-profit operator of health care facilities plans to use the proceeds for general corporate purposes, including announced acquisitions.
| Issuer: | HCA Inc.
|
| Amount: | $1.5 billion
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| Maturity: | June 15, 2047
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| Securities: | Senior secured notes
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| Lead left bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Mizuho Securities USA Inc., Fifth Third Securities Inc., MUFG, Regions Securities LLC
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 264 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2046, then callable at par, otherwise non-callable
|
| Trade date: | June 8
|
| Settlement date: | June 22
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| Ratings: | Moody's: Ba1
|
| S&P: BBB-
|
| Fitch: BB+
|
| Distribution: | SEC registered
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| Price talk: | 5½% area
|
| Marketing: | Quick-to-market high-yield execution
|
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