By Paul A. Harris
St. Louis, Jan. 25 - Tenet Healthcare Corp. priced a massively upsized $800 million issue of 10-year senior notes (B3/B/B-) at 98.406 with a 9¼% coupon to yield 9½% in a quick-to-market transaction, according to market sources.
Price talk was 9 3/8% to 9½%.
Citigroup and Banc of America Securities LLC ran the books for the Rule 144A issue. Scotia Capital and SunTrust Robinson Humphrey were co-managers.
Proceeds will be used to repurchase or redeem the company's remaining senior notes due 2006 and 2007 and for general corporate purposes.
The issue was upsized from $500 million.
The issuer is a Santa Barbara, Calif.-based owner and operator of acute care hospitals and related health care services.
| Issuer: | Tenet Healthcare Corp.
|
| Amount: | $800 million (increased from $500 million)
|
| Maturity: | Feb. 1, 2015
|
| Security description: | Senior notes
|
| Bookrunners: | Citigroup, Banc of America Securities LLC
|
| Co-managers: | Scotia Capital, SunTrust Robinson Humphrey
|
| Coupon: | 9¼%
|
| Price: | 98.406
|
| Yield: | 9½%
|
| Spread: | 530 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points
|
| Trade date: | Jan. 25
|
| Settlement date: | Jan. 28
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Fitch: B-
|
| Price talk: | 9 3/8%-9½%
|
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