HCA Prices Upsized $1.4B HY Deal
March 3, 2010
Nashville, Tenn.-based hospital operator HCA upsized its high yield bond offering and on Tuesday issued $1.4 billion in 7.25% senior secured notes due 2020.
Proceeds from the deal, initially a $1 billion offering, will go to repay term loan debt, the company said. The notes priced with an OID of 99.10 to yield 7.35%, which was in line with price talk.
Bank of America Merrill Lynch, Citigroup, JPMorgan, Barclays, Deutsche Bank, Goldman Sachs and Wells Fargo were the joint bookrunners on the deal.
Moody’s Investors Service assigned a Ba3 rating to the proposed bonds, and Standard & Poor’s and Fitch Ratings assigned a BB rating.
HCA last hit the new issue market in July, when it sold $1.25 billion in senior notes due 2020. In early February, the company drew down $1.75 billion from its $2 billion revolver to make a dividend payment to its private equity owners Green Tree Credit Solutions and Booz Allen Hamilton (LFN, Feb. 1, 2010).
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