By Paul A. Harris
St. Louis, June 15 - Tenet Healthcare Corp. priced a massively upsized $1 billion issue of 10-year senior notes (B3/B-) Tuesday at 97.674 with a 9 7/8% coupon to yield 10¼%, a syndicate source said.
Price talk was in the area of 10¼%.
The sale generated $976.74 million of proceeds.
Citigroup ran the books for the Rule 144A issue. The co-managers were Banc of America Securities, Credit Suisse First Boston and JP Morgan.
Proceeds will be used to repurchase the company's outstanding senior notes with earlier maturities, and for general corporate purposes.
The issuer is a Santa Barbara, Calif.-based owner and operator of acute care hospitals.
The issue was increased from $500 million.
| Issuer: | Tenet Healthcare Corp.
|
| Amount: | $1 billion (increased from $500 million)
|
| Proceeds: | $976.74 million
|
| Maturity: | July 1, 2014
|
| Security description: | Senior notes
|
| Bookrunner: | Citigroup
|
| Co-managers: | Banc of America Securities, Credit Suisse First Boston, JP Morgan
|
| Coupon: | 9 7/8%
|
| Price: | 97.674
|
| Yield: | 10¼%
|
| Spread: | 556 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points
|
| Pricing date: | June 15
|
| Settlement date: | June 18
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 10¼% area
|
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