By Paul A. Harris
Portland, Ore., Nov. 16 – Tenet Healthcare Corp. priced $1.45 billion of eight-year senior secured first-lien notes (B1/B+/B+) at par to yield 4 3/8% in a Tuesday drive-by, according to market sources.
The yield came in the middle of yield talk in the 4 3/8% area and tight to initial guidance in the 4½% area.
The deal was driven into the market on as much as $650 million of reverse inquiry, playing to a book that closed with around $2.4 billion of orders, according to a trader, who added that accounts were buying it to own it, as opposed to trading it.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Barclays, 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 services provider plans to use the proceeds to finance the acquisition of Surgical Center Development #3, LLC, Surgical Center Development #4, LLC and other related assets, with any remainder to be used for general corporate purposes, which may include debt repayment, cash on the balance sheet, working capital and capital expenditures.
| Issuer: | Tenet Healthcare Corp.
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| Amount: | $1.45 billion
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| Maturity: | Jan. 15, 2030
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| Securities: | Senior secured first-lien notes
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | Barclays, 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.
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| Coupon: | 4 3/8%
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| Price: | Par
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| Yield: | 4 3/8%
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| Spread: | 284 bps
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| First call: | Jan. 15, 2024 at 102.188
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| Trade date: | Nov. 16
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| Settlement date: | Dec. 1
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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 3/8% area
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| Marketing: | Drive-by
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