By Paul A. Harris
St. Louis, Nov. 16 - HCA Inc. priced a $1.25 billion off-the-shelf issue of high-yield bonds (Ba2/BB+) on Wednesday in two tranches, according to an informed source.
The company sold $500 million of five-year senior notes at 99.707 with a 5½% coupon to yield 5.567%, or 200 basis points over Treasuries. Price talk was the 200 basis point area.
Merrill Lynch & Co. and JP Morgan were joint bookrunners.
HCA also sold $750 million of senior notes due Jan. 15, 2015 at 99.671 with a 6 3/8% coupon to yield 6.421%, or 220 basis points over Treasuries. Price talk was the 225 basis point area.
JP Morgan and Merrill Lynch & Co. ran the books.
The company will also obtain a $2.5 billion bank loan.
The Nashville, Tenn.-based hospital operator plans to use proceeds 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).
Issuer: | HCA Inc.
|
Amount: | $1.25 billion
|
Pricing date: | Nov. 16
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Settlement date: | Nov. 19
|
Ratings: | Moody's: Ba2
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| Standard & Poor's: BB+
|
|
Five-year tranche
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Amount: | $500 million
|
Maturity: | Dec. 1, 2009
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Security description: | Senior notes
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Bookrunners: | Merrill Lynch & Co., JP Morgan
|
Coupon: | 5½%
|
Price: | 99.707
|
Yield: | 5.567%
|
Spread: | 200 basis points
|
Call protection: | Make-whole call at Treasuries plus 30 basis points
|
Price talk: | 200 basis point area
|
|
10-year tranche
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Amount: | $750 million
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Maturity: | Jan. 15, 2015
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Bookrunners: | JP Morgan, Merrill Lynch & Co.
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Security description: | Senior notes
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Coupon: | 6 3/8%
|
Price: | 99.671
|
Yield: | 6.421%
|
Spread: | 220 basis points
|
Call protection: | Make-whole call at Treasuries plus 35 basis points
|
Price talk: | 225 basis point area
|
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