Published on 8/8/2016 in the Prospect News High Yield Daily.
New Issue: HCA upsizes to $1.2 billion, prices 10.5-year secured bullet at par to yield 4½%
By Paul A. Harris
Portland, Ore., Aug. 8 – HCA Holdings, Inc. priced an upsized $1.2 billion issue of 10.5-year senior secured bullet notes (Ba1/BBB-/BB+) at par to yield 4½% on Monday, according to market sources.
The issue size was increased from $1 billion.
The yield printed at the tight end of yield talk in the 4 5/8% area, and inside of initial guidance in the 4¾% area.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey, Inc., UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.
The Nashville, Tenn.-based health care facilities operator plans to use the proceeds, including those resulting from the $200 million upsizing of the issue, to refinance a portion of its term loan B-4 and for general corporate purposes.
| Issuer: | HCA Inc.
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| Amount: | $1.2 billion, increased from $1 billion
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| Maturity: | Feb. 15, 2027
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| Securities: | Senior secured notes
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey, Inc., UBS Securities LLC, Wells Fargo Securities LLC
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| Co-managers: | Credit Agricole Securities (USA) Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., SMBC Nikko Securities America Inc.
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| Coupon: | 4½%
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| Price: | Par
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| Yield: | 4½%
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| Spread: | 294 bps
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| Call protection: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2026, then callable at par, otherwise non-callable
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| Trade date: | Aug. 8
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| Settlement date: | Aug. 15
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| Ratings: | Moody’s: Ba1
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| Standard & Poor’s: BBB-
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| Fitch: BB+
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| Distribution: | SEC registered
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| Price talk: | 4 5/8% area
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| Marketing: | Quick to market
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