Tenet Announces Pricing of Its Private Offering of Senior Secured Notes to Refinance $4.2 Billion in Outstanding Notes
August 12 2019 - 6:13PM
Business Wire
Tenet Healthcare Corporation (NYSE: THC) established today the
pricing of the previously announced private placement offering of
$4.2 billion in aggregate principal amount of newly issued notes to
refinance $4.2 billion of its currently outstanding notes.
Completion of the offering is subject to standard closing
conditions. The offering includes:
- $600 million aggregate principal amount of senior secured first
lien notes due September 1, 2024, which will bear interest at a
rate of 4.625% per annum;
- $2,100 million aggregate principal amount of senior secured
first lien notes due January 1, 2026, which will bear interest at a
rate of 4.875% per annum; and
- $1,500 million aggregate principal amount of senior secured
first lien notes due November 1, 2027, which will bear interest at
a rate of 5.125% per annum (collectively, the “notes”).
Tenet intends to use the net proceeds from the sale of the
notes, after payment of fees and expenses, together with cash on
hand and/or any borrowings under its senior secured revolving
credit facility, to fund the redemption and discharge of:
- $500 million aggregate principal amount of its outstanding
4.750% Senior Secured Notes due 2020;
- $1,800 million aggregate principal amount of its outstanding
6.000% Senior Secured Notes due 2020;
- $850 million aggregate principal amount of its outstanding
4.500% Senior Secured Notes due 2021; and
- $1,050 million outstanding aggregate principal amount of its
4.375% Senior Secured Notes due 2021.
Tenet also expects to seek an amendment to its existing senior
secured revolving credit facility following the offering, which may
include increasing borrowing capacity up to $1.5 billion (up from
$1.0 billion) and extending the maturity date, among other
changes.
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 persons reasonably believed to be
“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 national diversified
healthcare services company headquartered in Dallas with 110,000
employees. Through an expansive care network that includes United
Surgical Partners International, we operate 65 hospitals and
approximately 500 other healthcare facilities, including surgical
hospitals, ambulatory surgery centers, urgent care and imaging
centers and other outpatient facilities. We also operate Conifer
Health Solutions, which provides revenue cycle management and
value-based care services to hospitals, health systems, physician
practices, employers and other customers. At the center of
everything we do is a commitment to deliver the right care, in the
right place, at the right time, and to continually improve and
advance the healthcare delivery system in the markets we serve. For
more information, please visit www.tenethealth.com.
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,” “anticipate,” “assume,”
“believe,” “budget,” “estimate,” “forecast,” “intend,” “plan,”
“predict,” “project,” “seek,” “see,” “target,” 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, 2018, Form 10-Q for the quarterly
period ended June 30, 2019 and other filings with the Securities
and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20190812005624/en/
Investor Contact: Brendan Strong 469-893-6992
investorrelations@tenethealth.com
Media Contact: Lesley Bogdanow 469-893-2640
mediarelations@tenethealth.com
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