Published on 2/12/2020 in the Prospect News High Yield Daily.
New Issue: HCA prices upsized $2.7 billion 10.5-year bullet at par to yield 3½%
By Paul A. Harris
Portland, Ore., Feb. 12 – HCA Healthcare, Inc. priced a massively upsized $2.7 billion issue of HCA Inc. 10.5-year senior bullet notes (Ba2/BB-/BB) at par to yield 3½% on Tuesday, according to market sources.
The issue size increased from $1 billion.
The yield printed at the wide end of the 3¼% to 3½% yield talk. Initial talk had the note coming to yield in the mid-3% area, a bond trader said.
Bookrunners were J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC.
The issuer, a wholly owned subsidiary of the Nashville, Tenn.-based for-profit operator of health care facilities, plans to use the proceeds to redeem all $1 billion of 6¼% senior notes due 2021 and for general corporate purposes.
The incremental proceeds resulting from the upsize will be used to redeem $2 billion of 7½% senior notes due 2022.
| Issuer: | HCA Inc.
|
| Amount: | $2.7 billion, increased from $1 billion
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| Maturity: | Sept. 1, 2030
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| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Capital One Securities Inc., Mizuho Securities USA LLC, Fifth Third Securities Inc., MUFG, Regions Securities LLC and Scotia Capital (USA) Inc.
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| Coupon: | 3½%
|
| Price: | Par
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| Yield: | 3½%
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| Spread: | 192 bps
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| Call protection: | Make-whole call at Treasuries plus 50 bps until March 1, 2030, then callable at par, otherwise non-callable
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| Trade date: | Feb. 11
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| Settlement date: | Feb. 26
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| Ratings: | Moody's: Ba2
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| S&P: BB-
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| Fitch: BB
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| Distribution: | SEC registered
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| Price talk: | 3¼% to 3½%
|
| Marketing: | Drive-by
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