New Issue: HCA details $5 billion of split-rated secured notes in three parts

By Devika Patel

Knoxville, Tenn., June 6 – HCA Inc. offered further details about a $5 billion public offering of split-rated senior secured notes (Baa3/BBB-/BB+) that priced in three tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.

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. These notes priced at 99.497 to yield 4.187%.

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. These notes priced at 99.086 to yield 5.199%.

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. These notes priced at 99.528 to yield 5.349%.

BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc. and Wells Fargo 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., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities LLC
Co-managers:	Mizuho Securities USA Inc., RBC Capital Markets Corp., SunTrust Robinson Humphrey Inc., Capital One Securities, Inc., Fifth Third Securities Inc., MUFG, Regions Securities LLC and Scotia Capital (USA) Inc.
Trade date:	June 5
Settlement date:	June 12
Ratings:	Moody’s: Baa3
	S&P: BBB-
	Fitch: BB+
Distribution:	SEC registered
10-year notes
Amount:	$2 billion
Maturity:	June 15, 2029
Coupon:	4.125%
Price:	99.497
Yield:	4.187%
Spread:	Treasuries plus 205 bps
Call:	Make-whole call at Treasuries plus 35 bps until March 15, 2029, then a par call
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%
Price:	99.086
Yield:	5.199%
Spread:	Treasuries plus 255 bps
Call:	Make-whole call at Treasuries plus 40 bps until Dec. 15, 2038, then a par call
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%
Price:	99.528
Yield:	5.349%
Spread:	Treasuries plus 270 bps
Call:	Make-whole call at Treasuries plus 45 bps until Dec. 15, 2048, then a par call
Change-of-control put:	101%
Price talk:	Treasuries plus 275 bps, plus or minus 5 bps; initial talk at Treasuries plus 290 bps area

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