HCA plans to price $1 billion 10.25-year bullet in Monday drive-by

By Paul A. Harris

Portland, Ore., Nov. 9 – HCA Inc. plans to price a $1 billion offering of 10.25-year senior bullet notes (expected ratings B1/B+) on Monday, according to an informed source.

The public offering is being marketed by means of an internet roadshow. There will be no investor call.

Barclays is the lead left bookrunner. BofA Merrill Lynch, 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 are the joint bookrunners.

Credit Agricole CIB, Fifth Third Bank, Mizuho Securities and SMBC Nikko are the co-managers.

The notes feature a make-whole call at Treasuries plus 50 basis points until three months prior to maturity, then become callable at par. Otherwise they are non-callable.

The notes also feature a 101% poison put.

The covenants are the same as those of the issuer’s existing 5 3/8% senior notes due 2025.

The Nashville, Tenn.-based for-profit operator of health care facilities plans to use the proceeds to redeem all of its outstanding 6½% senior notes due Feb. 15, 2016.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.