Tenet $45 million greenshoe raises convertibles to $345 million

By Marisa Wong

Milwaukee, Sept. 25 - Tenet Healthcare Corp. announced that the underwriters of its recent offering of 7% mandatory convertible preferred stock due 2012 exercised the $45 million over-allotment option in full, increasing the offering to $345 million. The sale was completed on Friday.

Tenet originally priced 300,000 shares of the three-year mandatory convertible preferred stock on Sept. 22 with a 7% dividend and an initial conversion premium of 20% at $1,000 per share, for gross proceeds of $300 million, as previously reported.

Goldman, Sachs & Co. was the bookrunner of the offering, and Barclays Capital Inc. was joint lead manager. Co-managers were Moelis & Co. and Wells Fargo Securities.

As a result of the exercise, net proceeds were expected to total $335 million. Proceeds were 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.