By Paul A. Harris
Portland, Ore., Aug. 12 – Tenet Healthcare Corp. priced $4.2 billion of senior secured first-lien notes (Ba3/BB-) in a revised quick-to-market three-part transaction on Monday, according to market sources.
In a tranche added subsequent to the announcement of the deal, Tenet priced $600 million of five-year notes at par to yield 4 5/8%. The tranche was upsized from its $500 million launch size.
The deal also featured a $2.1 billion amount of 6.3-year notes, which priced at par to yield 4 7/8%. The tranche size decreased from the $2.2 billion launch size. The yield printed in the middle of the 4¾% to 5% yield talk, which was also the initial talk.
The long tranche featured $1.5 billion of 8.2-year notes, which priced at par to yield 5 1/8%. The yield printed in the middle of the 5% to 5¼% yield talk, which was also the initial talk.
Barclays was the lead left bookrunner. Joint bookrunners were Goldman Sachs & Co. LLC, BofA Securities Inc., Capital One Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Scotia Capital and Morgan Stanley & Co. LLC.
The Dallas-based health care company plans to use the proceeds along with cash on hand and a draw on its ABL revolving credit facility, to redeem $500 million of its 4¾% senior secured first-lien notes due 2020, $1.8 billion of its 6% senior secured first-lien notes due 2020, $850 million of its 4½% senior secured first-lien notes due 2021 and $1.05 billion of its 4 3/8% senior secured first-lien notes due 2021.
Tenet Healthcare owns and operates acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities.
| Issuer: | Tenet Healthcare Corp.
|
| Amount: | $4.2 billion
|
| Securities: | Senior secured first-lien notes
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc., Capital One Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Scotia Capital and Morgan Stanley & Co. LLC
|
| Trade date: | Aug. 12
|
| Settlement date: | Aug. 26
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S with limited registration rights
|
| Marketing: | Quick to market
|
|
|
| Five-year notes
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | Sept. 1, 2024
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 312 bps
|
| First call: | Sept. 1, 2021 at 102.313
|
|
|
| 6.3-year notes
|
| Amount: | $2.1 billion, decreased from $2.2 billion
|
| Maturity: | Jan. 1, 2026
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 332 bps
|
| First call: | March 1, 2022 at 102.438
|
| Price talk: | 4¾% to 5%
|
|
|
| 8.2-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Nov. 1, 2027
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Spread: | 353 bps
|
| First call: | Nov. 1, 2022 at 102.563
|
| Price talk: | 5% to 5¼%
|
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