New Issue: HCA sells upsized $3.5 billion of five-, 10-year secured notes

By Paul A. Harris

Portland, Ore., March 3 - HCA Inc. upsized its offering of senior secured notes (Ba3/BB/) to $3.5 billion from $3 billion and priced the non-callable notes in two tranches on Monday, according to a market source.

An upsized $1.5 billion tranche of five-year notes priced at par to yield 3¾%. The tranche was upsized from $1 billion. The yield printed at the tight end of the 3¾% to 4% yield talk.

In addition HCA priced a $2 billion tranche of 10-year notes at par to yield 5%, at the tight end of the 5% to 5¼% yield talk.

J.P. Morgan Securities LLC, Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., RBC Capital Markets Corp., SunTrust Robinson Humphrey Inc., UBS Investment Bank and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market deal.

The Nashville, Tenn.-based hospital company plans to use the proceeds to redeem and repurchase $1.5 billion of its 8½% senior secured notes due 2019 and $1.25 billion of its 7⅞% senior secured notes due 2020 and for general corporate purposes.

Issuer:	HCA Inc.
Amount:	$3.5 billion, increased from $3 billion
Securities:	Senior secured notes
Bookrunners:	J.P. Morgan Securities LLC, Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., RBC Capital Markets Corp., SunTrust Robinson Humphrey Inc., UBS Investment Bank, Wells Fargo Securities LLC
Co-managers:	Credit Agricole Securities (USA) Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., SMBC Nikko
Trade date:	March 3
Settlement date:	March 17
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
Distribution:	SEC registered
Marketing:	Quick to market
Five-year notes
Amount:	$1.5 billion, increased from $1 billion
Maturity:	March 15, 2019
Coupon:	3¾%
Price:	Par
Yield:	3¾%
Spread:	229 bps
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Price talk:	3¾% to 4%
10-year notes
Amount:	$2 billion
Maturity:	March 15, 2024
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	240 bps
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Price talk:	5% to 5¼%

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