Tenet Healthcare defaults on 6 7/8% notes, expects to meet cure period filing deadline

By Caroline Salls

Pittsburgh, Aug. 26 - Tenet Healthcare Corp. received a notice of default from holders of $139.85 million of its $450 million outstanding 6 7/8% senior notes due 2031 for failure to file its form 10-Q quarterly financial report, according to a filing with the Securities and Exchange Commission.

The notice begins a 90-day cure period, under which the company has until Nov. 23 to avoid an event of default by filing the form 10-Q.

According to the filing, the company believes it will be able to file the 10-Q within the 90-day cure period.

If the default is not cured by that time, the bondholders can declare the principal amount of the notes to be due and payable immediately.

That action could trigger a cross default under the company's other outstanding bond issuances.

Tenet Healthcare is a Santa Barbara, Calif., owner and operator of acute care hospitals and related health care services.

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