HCA offers $1.25 billion in two tranches via JP Morgan, Merrill Lynch, to price Wednesday

By Paul A. Harris

St. Louis, Nov. 15 - HCA Inc. restructured its $1.25 billion bond offering (Ba2/BB+) on Monday, dropping a proposed seven-year tranche, according to a market source. The size of the offering remains the same.

Pricing is expected on Wednesday.

An investor conference call is scheduled to take place on Tuesday.

The bonds will now be sold with five- and 10-year maturities, each one callable with a make-whole call.

Initially the deal had been announced as a three-tranche offering.

JP Morgan and Merrill Lynch & Co. are the bookrunners for the off the shelf offering.

The company is also obtaining a $2.5 billion bank loan.

Proceeds will be used to repay the bridge loan incurred to fund an offer to repurchase up to 61 million of its common shares (approximately $2.25 billion based on Oct. 13 share price of $37).

HCA is a Nashville, Tenn., hospital operator.

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