Published on 10/7/2014 in the Prospect News High Yield Daily.
New Issue: HCA upsizes to $2 billion, prices secured notes in two bullet tranches
By Paul A. Harris
Portland, Ore., Oct. 7 – HCA Inc. priced an upsized $2 billion offering of non-callable senior secured notes (Ba2//BB+) in two tranches on Tuesday, according to a syndicate source.
The deal included a $600 million tranche of five-year notes that priced at par to yield 4¼%, at the tight end of the 4¼% to 4 3/8% yield talk.
HCA also priced a $1.4 billion tranche of 10.5-year notes at par to yield 5¼%, at the tight end of the 5¼% to 5 3/8% yield talk.
The deal was upsized from $1.5 billion.
BofA Merrill Lynch was the left bookrunner for the public offering.
Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., UBS Investment Bank and Wells Fargo Securities LLC were the joint bookrunners.
The Nashville, Tenn.-based health care services provider plans to use the proceeds to refinance debt and for general corporate purposes.
Issuer: | HCA Inc.
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Amount: | $2 billion, increased from $1.5 billion
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Securities: | Non-callable senior secured notes
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Left bookrunner: | BofA Merrill Lynch
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Joint bookrunners: | Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., UBS Investment Bank, Wells Fargo Securities LLC
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Co-managers: | Credit Agricole CIB, Fifth Third Securities, Mizuho Securities, SMBC Nikko
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Trade date: | Oct. 7
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Settlement date: | Oct. 17
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Ratings: | Moody's: Ba2
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| Fitch: BB+
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Distribution: | SEC registered
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Marketing: | Quick to market
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Five-year notes
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Amount: | $600 million
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Maturity: | Oct. 15, 2019
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Coupon: | 4¼%
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Price: | Par
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Yield: | 4¼%
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Spread: | 264 bps
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Price talk: | 4¼% to 4 3/8%
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10.5-year notes
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Amount: | $1.4 billion
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Maturity: | April 15, 2025
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Coupon: | 5¼%
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Price: | Par
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Yield: | 5¼%
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Spread: | 291 bps
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Price talk: | 5¼% to 5 3/8%
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