Tenet Announces Pricing of its Private Offering of Senior Secured & Unsecured Notes to Refinance $3.541 Billion in Outstandin...
June 05 2017 - 6:40PM
Business Wire
Tenet Healthcare Corporation (NYSE: THC) established today the
pricing of the previously announced private offering of newly
issued notes to refinance $3.541 billion of its currently
outstanding notes. The offering includes:
- $830 million aggregate principal amount
of senior secured first lien notes due 2024, which will bear
interest at a rate of 4.625% per annum, to be issued by Tenet;
- $1.040 billion aggregate principal
amount of senior secured first lien notes due 2024, which will bear
interest at a rate of 4.625% per annum, to be issued by THC Escrow
Corporation III (“THC Escrow Corp.”);
- $1.410 billion aggregate principal
amount of senior secured second lien notes due 2025, which will
bear interest at a rate of 5.125% per annum, to be issued by THC
Escrow Corp; and
- $500 million aggregate principal amount
of senior unsecured notes due 2025, which will bear interest at a
rate of 7.00% per annum, to be issued by THC Escrow Corp.
(collectively, the “notes”).
Tenet intends to use the net proceeds from the sale of the
notes, after payment of fees and expenses, to fund the redemption
and discharge of:
- $900 million aggregate principal amount
of its outstanding Floating Rate Senior Secured Notes due
2020;
- $500 million aggregate principal amount
of its outstanding 8% Senior Notes due 2020;
- $1.100 billion aggregate principal
amount of its outstanding 5% Senior Notes due 2019; and
- $1.041 billion aggregate principal
amount of its outstanding 6.25% Senior Secured Notes due 2018
(collectively, the “redemptions”).
Upon the completion of the redemptions, the notes issued by THC
Escrow Corp. will become the obligations of Tenet.
The notes will not be registered under the Securities Act of
1933, as amended (the “Securities Act”), or any other state
securities laws. As a result, they may not be offered or sold in
the United States or to any U.S. persons, except pursuant to an
applicable exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act. Accordingly, the
notes will be offered only to “qualified institutional buyers”
under Rule 144A of the Securities Act or, outside the United
States, to persons other than “U.S. persons” in compliance with
Regulation S under the Securities Act. A confidential offering
memorandum for the notes will be made available to such eligible
persons. The offering will be conducted in accordance with the
terms and subject to the conditions set forth in such offering
memorandum.
This news release is neither an offer to sell nor a solicitation
of an offer to buy, nor shall there be any sale of, these
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About Tenet Healthcare
Tenet Healthcare Corporation is a diversified healthcare
services company with 130,000 employees united around a common
mission: to help people live happier, healthier lives. Through its
subsidiaries, partnerships and joint ventures, including United
Surgical Partners International, the company operates 80 general
acute care hospitals, 20 short-stay surgical hospitals and
approximately 470 outpatient centers in the United States, as well
as nine facilities in the United Kingdom. Tenet’s Conifer Health
Solutions subsidiary provides technology-enabled performance
improvement and health management solutions to hospitals, health
systems, integrated delivery networks, physician groups,
self-insured organizations and health plans. For more information,
please visit www.tenethealth.com.
The terms “THC”, “Tenet Healthcare Corporation”, “the company”,
“we”, “us” or “our” refer to Tenet Healthcare Corporation or one or
more of its subsidiaries or affiliates as applicable.
This release contains “forward-looking statements” – that is,
statements that relate to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance and financial condition,
and often contain words such as “expect,” “assume,” “anticipate,”
“intend,” “plan,” “believe,” “seek,” “see,” or “will.”
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. Particular uncertainties that
could cause our actual results to be materially different than
those expressed in our forward-looking statements include, but are
not limited to, uncertainties about the closing of the offering,
the expected use of proceeds and the factors disclosed under
“Forward-Looking Statements” and “Risk Factors” in our Form 10-K
for the year ended December 31, 2016, Form 10-Q for the quarterly
period ended March 31, 2017 and other filings with the Securities
and Exchange Commission.
Tenet uses its company website to provide
important information to investors about the company including the
posting of important announcements regarding financial performance
and corporate developments.
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version on businesswire.com: http://www.businesswire.com/news/home/20170605006285/en/
Tenet Healthcare CorporationCorporate
Communications:Lesley Bogdanow,
469-893-2640mediarelations@tenethealth.comorInvestor
Relations:Brendan Strong,
469-893-6992investorrelations@tenethealth.com
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