By Rebecca Melvin
New York, Sept. 22 - Tenet Healthcare Corp. priced a $300 million offering of three-year mandatory convertible preferred stock with a liquidation preference of $1,000 per share for a 7% dividend and an initial conversion premium of 20%, according to a news release.
The registered, off-the-shelf offering has a 15% greenshoe for up to an additional $45 million of preferred stock.
Goldman, Sachs & Co. is the bookrunner of the offering, with Barclays Capital Inc. serving as joint lead manager. Co-managers were Moelis & Co. and Wells Fargo Securities.
Proceeds will be used to repurchase $300 million of its outstanding 9.25% senior notes due 2015 through a privately negotiated transaction.
Dallas-based Tenet Healthcare owns and operates acute-care hospitals and provides related health care services.
| Issuer: | Tenet Healthcare Corp.
|
| Issue: | Convertible mandatory preferreds
|
| Bookrunner: | Goldman Sachs & Co.
|
| Lead manager: | Barclays Capital Inc.
|
| Co-managers: | Moelis & Co., Wells Fargo Securities
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | Oct. 1, 2012
|
| Dividend: | 7%
|
| Price: | Par, $1,000
|
| Conversion premium: | 20%
|
| Conversion price: | $7.02
|
| Minimum conversion rate: | 142.4501
|
| Maximum conversion rate: | 170.9402
|
| Takeover protection: | Yes
|
| Puts: | No
|
| Pricing date: | Sept. 21
|
| Settlement date: | Sept. 25
|
| Stock reference price: | $5.85, close on Sept. 21
|
| Stock symbol: | NYSE: THC
|
| Distribution: | Registered
|
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