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Tenet Healthcare to price $4.2 billion two-part secured first-lien notes in Monday drive-by
By Paul A. Harris
Portland, Ore., Aug. 12 – Tenet Healthcare Corp. plans to price $4.2 billion of senior secured first-lien notes (existing ratings Ba3/BB-) in two tranches in a quick-to-market Monday trade following a mid-morning global conference call with investors, according to market sources.
The deal features 6.3-year notes set to mature in 2026, which are callable after 2.5 years at par plus 50% of the coupon, and 8.2-year notes due to mature in 2027, which are callable after 3.2 years at par plus 50% of coupon.
Tranche sizes to remain to be determined.
Initial price talk has the 6.3-year notes coming to yield 4¾% to 5% and the 8.2-year notes coming to yield 5% to 5¼%, a trader said.
Barclays is the lead left bookrunner. Goldman Sachs & Co. LLC, BofA Securities Inc., Capital One Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Scotia Capital and Morgan Stanley & Co. LLC are the joint bookrunners.
The notes are being sold via Rule 144A and Regulation S with limited registration rights.
The Dallas-based health care company plans to use the proceeds along with cash on hand and a draw on its ABL revolving credit facility, to redeem $500 million of its 4¾% senior secured first-lien notes due 2020, $1.8 billion of its 6% senior secured first-lien notes due 2020, $850 million of its 4½% senior secured first-lien notes due 2021 and $1.05 billion of its 4 3/8% senior secured first-lien notes due 2021.
Tenet Healthcare owns and operates acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities.
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