Published on 8/9/2018 in the Prospect News High Yield Daily.
New Issue: HCA prices $2 billion of senior notes in eight-, 10-year bullet deal
By Paul A. Harris
Portland, Ore., Aug. 9 – HCA Inc. priced $2 billion of senior bullet notes (Ba2/BB-) in two tranches in a quick-to-market trade on Thursday, according to market sources.
The deal included $1 billion of eight-year notes that priced at par to yield 5 3/8%, The yield printed at the tight end of yield talk set in the 5½% area and inside initial guidance set in the 5 5/8% area
HCA also priced $1 billion of 10-year notes at par to yield 5 5/8%. The yield printed at the tight end of yield talk set in the 5¾% area and inside initial guidance set in the 5 7/8% area.
Goldman Sachs & Co. is the left bookrunner. Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC, Wells Fargo Securities LLC are the joint bookrunners.
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.
| Issuer: | HCA Inc.
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| Amount: | $2 billion
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| Securities: | Senior notes
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| Left bookrunner: | Goldman Sachs & Co.
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| Joint bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC, Wells Fargo Securities LLC
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| Co-managers: | Capital One Securities Inc., Mizuho Securities USA LLC, Fifth Third Securities Inc., MUFG Securities Americas Inc., Regions Securities LLC, Scotia Capital (USA) Inc.
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| Trade date: | Aug. 9
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| Settlement date: | Aug. 23
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| Ratings: | Moody's: Ba2
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| S&P: BB-
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| Distribution: | SEC registered
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| Marketing: | Quick to market
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| Eight-year notes
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| Amount: | $1 billion
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| Maturity: | Sept. 1, 2026
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| Coupon: | 5 3/8%
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| Price: | Par
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| Yield: | 5 3/8%
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| Call protection: | Make-whole at Treasuries plus 50 bps until six months prior to maturity, then callable at par
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| Price talk: | 5½% area
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| Ten-year notes
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| Amount: | $1 billion
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| Maturity: | Sept. 1, 2028
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| Coupon: | 5 5/8%
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| Price: | Par
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| Yield: | 5 5/8%
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| Call protection: | Make-whole at Treasuries plus 50 bps until six months prior to maturity, then callable at par
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| Price talk: | 5¾% area
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