Tenet Healthcare wraps tender offer for 9% notes; $22,000 of notes tendered since consent deadline

By Susanna Moon

Chicago, Dec. 6 - Tenet Healthcare Corp. said it received tenders of $712.968 million, or 99.85%, of its $714,012,000 of 9% senior secured notes due 2015 by the tender expiration at midnight ET on Dec. 5.

The hospital chain received additional tenders of $22,000 since the 5 p.m. ET on Nov. 18 consent payment deadline.

The company purchased the notes tendered before the consent payment deadline for a total payment of about $775.31 million, representing about $771.745 million of principal and premium payments and about $3.565 million for accrued interest through the purchase date, according to a press release.

Tenet purchased the notes tendered after the consent deadline for $23,346.18, consisting of $23,153.68 of principal and premium payments and $192.50 for accrued interest through the purchase date.

Tenet purchased the notes with proceeds from its private offering of $900 million principal amount of 6¼% senior secured notes due 2018.

Based on the tenders received at the early deadline, the company said it obtained the needed consents to amend the notes and executed a supplemental note indenture.

As previously noted, the company paid $1,082.44 per $1,000 principal amount of notes tendered by the consent date, which included a premium of $30.00 per $1,000 principal amount.

Holders who tendered their notes after the consent date received $1,052.44 per $1,000 principal amount of notes.

The company paid accrued interest up to Nov. 21 for notes tendered by the consent date and up to Dec. 6 for any additional tendered notes.

Tenet sought consents from holders of a majority of the notes to amend the notes to eliminate most of the covenants, some events of default and other provisions.

The offer began on Nov. 4.

The dealer managers were Bank of America Merrill Lynch (888 292-0070 or call collect 980 683-3215), Barclays Capital (800 438-3242 or call collect 212 528-7581), Citigroup (800 588-3745) and Wells Fargo Securities (866 309-6316 or call collect 704 715-8341).

The information agent was Global Bondholder Services Corp. (866 540-1500 or call collect 212 430-3774).

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