Tenet driving by with $2.5 billion offering of eight-year notes; initial guidance in 6¼% area

By Paul A. Harris

Portland, Ore., Sept. 1 – Tenet Healthcare Corp. plans to price a $2.5 billion offering of eight-year senior notes (Caa1/CCC+/B) in a Tuesday drive-by trailing a late-morning conference call with investors, according to market sources.

Initial talk has the notes coming to yield in the 6¼% area, according to a bond trader.

Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities Inc., Capital One Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets Corp., Truist Financial Corp., Wells Fargo Securities LLC, Scotia Capital (USA) Inc. and Santander Investment Securities Inc. are the joint bookrunners.

The notes, which are formatted according to Rule 144A and Regulation S, with limited registration rights, become callable after three 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 services provider plans to use the proceeds to redeem its 8 1/8% senior notes due 2022.

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