Tenet Announces Pricing of its $600 Million Private Offering of Senior Secured Notes
June 02 2020 - 4:49PM
Business Wire
Tenet Healthcare Corporation (NYSE: THC) today announced the
pricing of the previously announced private placement offering and
has agreed to issue and sell $600 million in aggregate principal
amount of senior secured first lien notes due on June 15, 2028,
which will bear interest at a rate of 4.625% per annum (the
“notes”). Completion of the notes offering is expected to occur on
June 16, 2020, and is subject to, among other things, standard
closing and market conditions.
Tenet intends to use the net proceeds from the sale of the
notes, after payment of fees and expenses, for general corporate
purposes which may include, without limitation, repayment and
refinancing of other debt, cash on balance sheet, as well as
working capital and capital expenditures.
The notes will be guaranteed by certain of Tenet’s subsidiaries
and secured on a first lien priority basis by a pledge of the
capital stock and other ownership interests of certain of Tenet’s
subsidiaries. The notes will be effectively senior to Tenet’s
existing and future indebtedness secured on a more junior basis, as
well as unsecured indebtedness and other liabilities, to the extent
of the value of the collateral securing such borrowings.
The notes to be offered 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.
Cautionary Statement
This release contains “forward-looking statements” - that is,
statements that relate to future, not past, events. In this
context, forward-looking statements often address the Company's
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 the Company's actual results to be materially different
than those expressed in the Company's forward-looking statements
include, but are not limited to, the factors disclosed under
“Forward-Looking Statements” and “Risk Factors” in our Form 10-K
for the year ended December 31, 2019 and in our Form 10-Q for the
quarterly period ended March 31, 2020 and other filings with the
Securities and Exchange Commission.
About Tenet Healthcare
Tenet Healthcare Corporation (NYSE: THC) is a diversified
healthcare services company headquartered in Dallas, with 113,000
employees. Through an expansive care network that includes United
Surgical Partners International, we operate 65 hospitals and
approximately 510 other healthcare facilities, including surgical
hospitals, ambulatory surgery centers, urgent care and imaging
centers and other care sites and clinics. 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. Across the Tenet
enterprise, we are united by our mission to deliver quality,
compassionate care in the communities we serve.
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version on businesswire.com: https://www.businesswire.com/news/home/20200602005938/en/
Investor Contact: Regina Nethery 469-893-2387
regina.nethery@tenethealth.com
Media Contact: Lesley Bogdanow 469-893-2640
mediarelations@tenethealth.com
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