Tenet Healthcare extends early participation date in exchange for up to $1.6 billion of 6 3/8%, 6½% notes

New York, Feb. 4 - Tenet Healthcare Corp. said it has extended the early participation date and the withdrawal deadline in its offer to exchange up to $1.6 billion of its outstanding 6 3/8% global senior notes due Dec. 1, 2011 and 6½% notes due June 1, 2012 for an equal amount of two new series of senior secured notes maturing in 2014 and 2019.

The early participation date and withdrawal deadline are now 5 p.m. ET on Feb. 26 instead of 5 p.m. ET on Feb. 4.

The expiration remains 5 p.m. ET on Feb. 26.

As announced on Jan. 22, Citigroup, Banc of America Securities, Goldman Sachs and Scotia Capital are leading the exchange.

The new notes will be effectively senior to any remaining notes, including the $2.5 billion of the remaining 2013 through 2031 notes, by virtue of a guarantee and pledge of certain stock in subsidiaries, according to market sources.

Total consideration per $1,000 includes $500 million new five-year 9¼% notes and $500 million new 10¼% 10-year notes, and a $20 early payment concession.

Minimum participation requires $300 million of new notes. As originally announced, the early participation date was 5 p.m. ET on Feb. 4.

Franklin Templeton owns over 60% of the 2011 paper, and 50% of the 2012 paper, according to a high-yield mutual fund manager.

The source said that the dealers are stressing that the exchange is being done on a par-for-par basis, i.e. "No Haircut."

The new notes will be guaranteed and secured by a pledge of the capital stock and other ownership interests of some Tenet subsidiaries, according to a company news release.

Dallas-based Tenet Healthcare owns and operates acute-care hospitals and provides related health-care services.

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