HCA brings benchmark three-part split-rated secured notes offering in high-grade execution

By Paul A. Harris

Portland, Ore., June 5 – HCA Inc. plans to price a public offering of senior secured notes (expected ratings Baa3/BBB-/BB+) in three tranches on Wednesday, according to market sources.

The public offering, which is coming in an investment-grade execution, is structured as follows:

• 10-year notes with initial guidance in the Treasuries plus 235 basis points area, with a make-whole call until three months prior to maturity, after which they become callable at par;

• 20-year notes with initial guidance in the Treasuries plus 280 bps area, with a make-whole call until six months prior to maturity, after which they become callable at par; and

• 30-year notes with initial guidance in the Treasuries plus 290 bps area, with a make-whole call until six months prior to maturity, after which they become callable at par.

BofA Securities Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the bookrunners.

The notes in all three tranches will be putable at 101 upon a change of control.

Proceeds will be used for general corporate purposes and debt repayment.

HCA is a Nashville, Tenn.-based for-profit operator of health care facilities.

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