By Paul A. Harris
Portland, Ore., Nov. 16 – Tenet Healthcare Corp. priced an upsized $750 million issue of five-year senior secured second-lien notes (Ba3/B) at par to yield 7½% on Wednesday, according to a market source.
The issue size was increased from $500 million.
The yield printed on top of yield talk.
Barclays was the lead left bookrunner. BofA Merrill Lynch and Citigroup Global Markets Inc. are the joint bookrunners.
The deal came with Rule 144A and Regulation S formats. Under certain circumstances, Tenet and the guarantors will be required to enter into a registration rights agreement.
The covenants are similar to those of Tenet's senior secured floating-rate notes due 2020.
The Dallas-based hospital chain plans to use the proceeds to repay ABL revolver borrowings and for general corporate purposes.
| Issuer: | Tenet Healthcare Corp.
|
| Amount: | $750 million, increased from $500 million
|
| Maturity: | Jan. 1, 2022
|
| Securities: | Senior secured second-lien notes
|
| Left lead bookrunner: | Barclays
|
| Joint bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc.
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| First call: | Jan. 1, 2019 at 103.75
|
| Trade date: | Nov. 16
|
| Settlement date: | Dec. 1
|
| Ratings: | Moody's: Ba3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7½%
|
| Marketing: | Quick to market
|
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