HCA upsizes to $1 billion to $1.5 billion; talk is 9% with slight OID

By Paul A. Harris

St. Louis, April 14 - HCA Inc. is expected to price a massively upsized $1 billion to $1.5 billion offering of 10-year first-lien senior secured notes (BB) early Wednesday morning before the equity markets open in New York, according to informed sources.

The deal, which launched Tuesday morning at a size of $500 million, is talked with a yield in the 9% area and to price at a slight discount.

Citigroup Global Markets Inc., Banc of America Securities LLC, J.P. Morgan Securities Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. are joint bookrunners for the notes, which are being marketed via Rule 144A with registration rights.

Proceeds will be used to repay term loans under the cash flow credit facility.

On Feb. 11, 2009 the Nashville-based health care services provider priced a $310 million issue of 9 7/8% eight-year senior secured second-priority notes (B2/BB-/B+) at 96.673 to yield 10½%. Proceeds from that issue were also applied to the company's bank debt.

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