Tenet Healthcare issues new 9% notes, 10% notes in exchange for 6 3/8%, 6½% notes

By Jennifer Chiou

New York, May 14 - Tenet Healthcare Corp. recently issued $14.47 million of new 9% senior secured notes due 2015 and $14.47 million of new 10% senior secured notes due 2018 in exchange for $3.10 million of its 6 3/8% senior notes due Dec. 1, 2011, $25.84 million of its 6½% notes due June 1, 2012 as well as $6.40 million in cash, according to an 8-K filing with the Securities and Exchange Commission.

On Feb. 28, the company obtained tenders for a total of $1.4 billion of notes in its offer to exchange up to $1.6 billion of its outstanding 6 3/8% notes and 6½% notes for an equal amount of the two new series of senior secured notes.

As already reported, exchanged notes included $915 million, or 91.5%, of the 6 3/8% notes and $484 million, or 80.7%, of the 6½% notes.

The company had said it would issue a total of $1.4 billion of new notes, consisting of about $700 million of 9% six-year notes and $700 million of 10% nine-year notes.

The early participation date and withdrawal deadline were 5 p.m. ET on Feb. 26, extended from 5 p.m. ET on Feb. 4. The expiration date was 5 p.m. ET on Feb. 26.

As announced on Jan. 22, Citigroup, Banc of America Securities, Goldman Sachs and Scotia Capital led the exchange.

The new notes are effectively senior to any remaining notes by virtue of a guarantee and pledge of certain stock in subsidiaries.

Total consideration per $1,000 included $500 of the 9% notes, $500 of the 10% notes and a $20 early payment concession. A minimum participation condition required $300 million of new notes.

Dallas-based Tenet Healthcare owns and operates acute-care hospitals and provides related health-care services.

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