Tenet selling $1.8 billion eight-year secured notes on Wednesday; initial talk 6½% area

By Paul A. Harris

Portland, Ore., June 1 – Tenet Healthcare Corp. plans to price a $1.8 billion offering of senior secured notes due June 2030 (expected ratings B1/BB-/BB-) in a Wednesday drive-by following an investor conference call, according to market sources.

Initial guidance has the notes coming to yield in the 6½% area, a sellside source said.

Barclays is the left bookrunner. Goldman Sachs & Co. LLC, 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 come in Rule 144A and Regulation S formats and are being sold with limited registration rights.

The notes become callable after three years at par plus 50% of the coupon and feature a 40% equity clawback up to the first call date. They also feature a 101% poison put.

The Dallas-based health care services provider plans to use the proceeds plus balance sheet cash to redeem its 6¾% senior notes due 2023, including a make-whole premium.

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