Tenet Healthcare tenders for any and all $925 million 8 7/8% notes

By Jennifer Chiou

New York, May 15 - Tenet Healthcare Corp. announced the start of its cash tender offer for any and all of its $925 million of 8 7/8% senior secured notes due 2019.

The offer will end at midnight ET on June 12.

The company is also soliciting consents to amend the note indenture to eliminate most of the covenants and certain events of default and amend certain other provisions.

Tenet is also looking to release the liens on the assets that secure the notes and the indenture and make any amendments to the indenture and related security agreements necessary to effect the release of the liens.

The company will need consent from holders of at least 75% of the notes.

The withdrawal deadline will be 5 p.m. ET on May 29.

For each $1,000 principal amount, Tenet will pay a total consideration of $1,133.18, including a consent payment of $30.00 for those who tender prior to 5 p.m. ET on May 29.

The company will also pay accrued interest to the applicable settlement date. The initial settlement date will be May 30 for early-tendered notes. Final settlement is slated for June 13.

The dealer managers are Barclays (800 438-3242 or collect 212 528-7581), BofA Merrill Lynch (800 292-0070 or collect 980 387-3907), Citigroup Global Markets Inc. (800 558-3745) and Wells Fargo Securities (866 309-6316 or collect 704 410-4760).

Global Bondholder Services Corp. (866 540-1500 or collect 212 430-3774) is the information agent.

Tenet is a Dallas-based hospital chain.

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