Tenet to price $500 million five-year secured notes on Thursday; initial talk high 7% area

By Paul A. Harris

Portland, Ore., April 2 – Tenet Healthcare Corp. plans to price a $500 million offering of five-year senior secured first-lien notes (existing ratings Ba3/BB-) in a quick-to-market Thursday trade following a mid-morning conference call with investors, according to market sources.

Initial price talk has the notes coming to yield in the high 7% area, a trader said.

Barclays, BofA Securities Inc., Capital One Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Scotia Capital (USA) Inc. and Santander Investment Securities Inc. are the joint bookrunners.

The notes, which have Rule 144A and Regulation S formats with limited registration rights, become callable after two years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the coupon during the non-call period and a 101% poison put.

The Dallas-based health care provider plans to use the proceeds to repay debt under its ABL facility and for general corporate purposes.

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