Tenet Healthcare gets tenders, consents for 82.92% of 8 7/8% notes

By Toni Weeks

San Luis Obispo, Calif., May 30 - Tenet Healthcare Corp. announced the early results for the tender offer it commenced on May 15 for any and all of its $925 million of 8 7/8% senior secured notes due 2019.

According to a press release, $767,027,000, or 82.92%, principal amount of the outstanding notes had been validly tendered by 5 p.m. ET on May 29, the consent payment deadline.

The company also solicited consents to amend the note indenture and received enough consents to do so.

The company was seeking to eliminate most of the covenants and certain events of default and amend certain other provisions, including reducing the period required for a notice of redemption to three days from 30 days. Tenet needed the consent of holders of at least a majority of the outstanding principal amount of notes to make these changes to the note indenture.

Tenet was also looking to release the liens on the assets that secure the notes and the indenture and make any amendments to the indenture and related security agreements necessary to effect the release of the liens. The company required consents from holders of at least 75% of the notes to release the liens.

For each $1,000 principal amount, Tenet will pay a total consideration of $1,133.18, including a consent payment of $30.00 for those who tendered prior to the consent payment deadline. Holders who tender their notes after the consent payment deadline but before the offer expiration date, midnight ET on June 12, will receive $1,103.18 per $1,000 of notes.

The company will also pay accrued interest to the applicable settlement date. The initial settlement date will be May 30 for early tendered notes. Final settlement is slated for June 13.

Notes may no longer be withdrawn.

The company also announced it has completed its private offering of $1.05 billion of 4 3/8% senior secured notes due 2021, the proceeds from which will be used to purchase the tendered 8 7/8% notes.

The dealer managers are Barclays (800 438-3242 or collect 212 528-7581), BofA Merrill Lynch (800 292-0070 or collect 980 387-3907), Citigroup Global Markets Inc. (800 558-3745) and Wells Fargo Securities (866 309-6316 or collect 704 410-4760).

Global Bondholder Services Corp. (866 540-1500 or collect 212 430-3774) is the information agent.

Tenet is a Dallas-based hospital chain.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.