Tenet to price $500 million five-year secured notes on Thursday; price talk 7½%-7¾%

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, according to market sources.

The deal is talked to yield 7½% to 7¾%.

Official talk comes tight to early guidance in the high 7% area, according to a bond trader.

Books close at 12:30 p.m. ET on Thursday.

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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