Published on 5/18/2021 in the Prospect News High Yield Daily.
New Issue: Tenet Healthcare prices $1.4 billion eight-year secured notes at par to yield 4¼%
By Paul A. Harris
Portland, Ore., May 18 – Tenet Healthcare Corp. priced a $1.4 billion issue of eight-year senior secured notes (B1/B+/B+) at par to yield 4¼% in a Tuesday drive-by, according to market sources.
The yield printed at the wide end of the 4% to 4¼% yield talk. Initial guidance was in the low 4% area.
Barclays was the lead bookrunner. Others in the syndicate were Goldman Sachs & Co. LLC, BofA Securities Inc., Capital One Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC, Truist Securities Inc., Wells Fargo Securities LLC, Scotia Capital (USA) Inc., Santander Investment Securities Inc. and Fifth Third Securities Inc.
The Dallas-based health care service company plans to use the proceeds to redeem its 5 1/8% senior secured second-lien notes due 2025.
| Issuer: | Tenet Healthcare Corp.
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| Amount: | $1.4 billion
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| Maturity: | June 1, 2029
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| Securities: | Senior secured first-lien notes
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| Lead: | Barclays
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| Syndicate: | Barclays, Goldman Sachs & Co. LLC, BofA Securities Inc., Capital One Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC, Truist Securities Inc., Wells Fargo Securities LLC, Scotia Capital (USA) Inc., Santander Investment Securities Inc. and Fifth Third Securities Inc.
|
| Coupon: | 4¼%
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| Price: | Par
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| Yield: | 4¼%
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| Spread: | 282 bps
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| Call protection: | Three years
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| Trade date: | May 18
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| Settlement date: | June 2
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| Ratings: | Moody's: B1
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| S&P: B+
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| Fitch: B+
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| Distribution: | Rule 144A and Regulation S with limited registration rights
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| Price talk: | 4% to 4¼%
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| Marketing: | Drive-by
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