Published on 4/26/2012 in the Prospect News High Yield Daily.
New Issue: Tenet sells $150 million 8% notes due 2020, $141.2 million 6¼% notes due 2018
By Paul A. Harris
Portland, Ore., April 26 - Tenet Healthcare Corp. priced $291.23 million of notes in two add-on tranches on Wednesday, according to an informed source.
The Dallas-based hospital chain priced a $141,233,000 add-on to its 6¼% senior secured notes due Nov. 1, 2018 at 101, resulting in a 6.062% yield to worst.
Tenet Healthcare also priced a $150 million add-on to its 8% senior notes due Aug. 1, 2020 at 99.75, resulting in a 8.039% yield to worst.
Bank of America Merrill Lynch was the bookrunner.
The placement was in connection with the repurchase of $299 million mandatory convertible preferreds, according to a company earnings release for the first quarter ended March 31.
| Issuer: | Tenet Healthcare Corp.
|
| Amount: | $291,233,000
|
| Bookrunner: | Bank of America Merrill Lynch
|
| Trade date: | April 25
|
| Settlement date: | April 30
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Quick-to-market
|
|
|
| Add on to 6¼% senior secured notes due Nov. 1, 2018
|
| Amount: | $141,233,000
|
| Coupon: | 6¼%
|
| Price: | 101
|
| Yield to worst: | 6.062%
|
| Call protection: | Make-whole call at Treasuries plus 50 bps
|
| Original issue: | $900 million priced at par on Nov. 4, 2011
|
| Total issue size: | $1,041,233,000
|
|
|
| Add-on to 8% senior notes due Aug. 1, 2020
|
| Amount: | $150 million
|
| Coupon: | 8%
|
| Price: | 99.75
|
| Yield to worst: | 8.039%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Aug. 1, 2015, then callable at 104.0, 102.667, 101.333, par on and after Aug. 1, 2018
|
| Equity clawback: | 35% at 108.0 until Aug. 1, 2013
|
| Change-of-control put: | 101%
|
| Original issue: | $600 million priced at par in August 2010
|
| Total issue size: | $750 million
|
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