Tenet buys back $299 million of mandatory convertible preferreds

By Susanna Moon

Chicago, April 26 - Tenet Healthcare Corp. said it repurchased $299 million of mandatory convertible preferred stock.

This preferred stock would have converted into 51 million shares of the company's common stock on Oct. 1, 2012, based on the most recent closing share price, according to the company's earnings release for the first quarter.

The company's stock (NYSE: THC) closed at $5.48 on April 25.

In a related private financing, the company issued $150 million of 8% senior notes due Aug. 1, 2020 and $141.2 million of 6¼% senior secured notes due Nov. 1, 2018.

"As a result of this repurchase and the company's prior share repurchase program, completed in January of this year, our outstanding common share count was reduced by approximately 25 percent, on a fully dilutive basis," Trevor Fetter, president and chief executive officer of the Dallas-based hospital chain, noted in the release.

"These aggressive actions to restructure our balance sheet provide a strong signal of management's confidence in the value of the company's common stock."

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