HCA to price $2 billion two-part deal featuring eight- and 10-year bullet tranches on Thursday

By Paul A. Harris

Portland, Ore., Aug. 9 – HCA Inc. plans to sell $2 billion of senior bullet notes (Ba2/existing BB-) in two tranches in a quick-to-market trade on Thursday following a late-morning conference call with investors, according to market sources.

The deal features eight-year notes with initial guidance in the 5 5/8% area and 10-year notes with initial guidance in the 5 7/8% area, a trader said.

Goldman Sachs & Co. is the left bookrunner for the public offering. Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. JP Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co., RBC Capital Markets LLC, SMBC Nikko, SunTrust Robinson Humphrey, UBS Investment Bank and Wells Fargo Securities LLC are the joint bookrunners.

Mizuho Securities, Capital One, Fifth Third Bank, Scotia Capital and Regions are the co-managers.

The notes in both tranches feature make-whole calls at Treasuries plus 50 basis points until six months prior to their respective maturities, after which they become callable at par. They are otherwise non-callable.

The Nashville, Tenn.-based for-profit operator of health care facilities plans to use the proceeds to redeem all $1.5 billion of its outstanding 3¾% senior secured notes due 2019 and for general corporate purposes which may include funding of all or a portion of previously announced acquisitions.

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