By Cristal Cody
Tupelo, Miss., June 5 – HCA Inc. priced a $5 billion public offering of split-rated senior secured notes (Baa3/BBB-/BB+) in three tranches on Wednesday, according to a market source.
The company sold $2 billion of 4.125% 10-year notes with a spread of 205 basis points over Treasuries, on the tight side of guidance in the 210 bps area.
Initial price guidance was in the Treasuries plus 235 bps area.
HCA placed $1 billion of 5.125% 20-year notes at a 255 bps over Treasuries spread. The notes were initially talked to print in the Treasuries plus 280 bps area with guidance later tightened to the 260 bps spread area.
Finally, the company sold $2 billion of 5.25% 30-year notes at a Treasuries plus 270 bps spread. The notes were guided to price in the 275 bps spread area, compared to initial guidance in the Treasuries plus 290 bps area.
BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes and debt repayment.
HCA is a subsidiary of HCA Healthcare, Inc., a Nashville, Tenn.-based for-profit operator of health care facilities.
| Issuer: | HCA Inc.
|
| Amount: | $5 billion
|
| Description: | Senior secured notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and UBS Securities LLC
|
| Trade date: | June 5
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | June 15, 2029
|
| Coupon: | 4.115%
|
| Spread: | Treasuries plus 205 bps
|
| Call features: | Make-whole call until three months prior to maturity, then callable at par
|
| Change-of-control put: | 101%
|
| Price talk: | Treasuries plus 210 bps, plus or minus 5 bps; initial talk at Treasuries plus 235 bps area
|
|
|
| 20-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2039
|
| Coupon: | 5.125%
|
| Spread: | Treasuries plus 255 bps
|
| Call features: | Make-whole call until six months prior to maturity, then callable at par
|
| Change-of-control put: | 101%
|
| Price talk: | Treasuries plus 260 bps, plus or minus 5 bps; initial talk at Treasuries plus 280 bps area
|
|
|
| 30-year notes
|
| Amount: | $2 billion
|
| Maturity: | June 15, 2049
|
| Coupon: | 5.25%
|
| Spread: | Treasuries plus 270 bps
|
| Change-of-control put: | 101%
|
| Call features: | Make-whole call until six months prior to maturity, then callable at par
|
| Price talk: | Treasuries plus 275 bps, plus or minus 5 bps; initial talk at Treasuries plus 290 bps area
|
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