Tenet driving by with $1.45 billion eight-year first-lien notes; initial guidance 4½% area

By Paul A. Harris

Portland, Ore., Nov. 16 – Tenet Healthcare Corp. plans to price $1.45 billion of senior secured first-lien notes due January 2030 in a Tuesday drive-by following a conference call with investors, according to market sources.

The deal is in the market with initial guidance in the 4½% area, according to a bond trader, who added that $250 million of reverse inquiry helped to propel it into the market and it will likely come at 4¼%.

Goldman Sachs & Co. LLC is the left bookrunner. 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, Truist Securities Inc., Wells Fargo Securities LLC, Scotia Capital (USA) Inc., Santander Investment Securities Inc. and Fifth Third Securities Inc. are the joint bookrunners.

The eight-year notes, which are formatted according to the provisions of Rule 144A and Regulation S with limited registration rights, become callable after three years at par plus 50% of the coupon.

The Dallas-based health care services provider plans to use the proceeds to finance the acquisition of Surgical Center Development #3, LLC, Surgical Center Development #4, LLC and other related assets, with any remainder to be used for general corporate purposes, which may include debt repayment, cash on the balance sheet, working capital and capital expenditures.

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