Tenet accelerates commitment deadline on $2 billion of bridge loans

By Sara Rosenberg

New York, March 31 – Tenet Healthcare Corp. moved up the commitment deadline on its $2 billion of bridge loans to 5 p.m. ET on Tuesday from the close of business on Thursday, according to a market source.

Barclays is the bookrunner on the deal.

The debt consists of a $500 million senior secured bridge loan and a $1.5 billion senior unsecured bridge loan.

Proceeds will be used to create a joint venture with Welsh, Carson, Anderson & Stowe and United Surgical Partners International, combining Tenet’s and United Surgical’s short-stay surgery and imaging-center assets, and to fund the acquisition of Aspen Healthcare Ltd. from Welsh Carson.

The company intends to put in place permanent financing in the second quarter consisting of senior secured notes and senior notes.

Other funds for the transaction will come from operating cash flow and some proceeds from planned asset sales.

Net secured leverage will be 2.8 times, and net total leverage will be 6.1 times based on pro forma 2014 last-12-months pro forma adjusted EBITDA of $2,323,000,000.

Tenet will initially own 50.1% of the joint venture and will consolidate its financial results. Welsh Carson and the other existing investors in United Surgical will initially own the remaining 49.9%. Tenet will have a path to full ownership of United Surgical over the next five years through a put/call structure.

Tenet is a Dallas-based health-care services company. United Surgical is a Dallas-based owner and operator of ambulatory surgery centers, surgical hospitals and related businesses. And, Aspen Healthcare is an operator of nine private hospitals and clinics in the United Kingdom.

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