HCA to price $500 million tap of 5 7/8% notes due 2026 on Thursday

By Paul A. Harris

Portland, Ore., Dec. 3 – HCA Inc. plans to price a $500 million add-on to its 5 7/8% senior bullet notes due Feb. 15, 2026 (existing ratings B1/B+/BB) on Thursday, according to an informed source.

The deal is whispered at par to 101, according to a trader, who added that it has the potential to price tighter.

The pubic offering is being marketed via 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, Mizuho Securities, Fifth Third Bank and SMBC Nikko are the co-managers.

The notes are callable with a make-whole call at Treasuries plus 50 basis points until six months prior to maturity, after which they become callable at par. They are otherwise non-callable.

The notes also feature a 101% poison put.

The Nashville-based for-profit operator of health-care facilities plans to use the proceeds for general corporate purposes.

The original $1 billion issue priced at par on Nov. 9, 2015.

The add-on notes will become immediately fungible with original notes.

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