Tenet Healthcare Corp. Prices Upsized Private Offering of Senior Secured Notes to Refinance $1.52 Billion in Outstanding Notes
January 29, 2019 at 03:28 pm
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Tenet Healthcare Corp. established the pricing of the previously announced private offering of newly issued notes to refinance $1.52 billion of its currently outstanding notes. In a release on January 22, the Company noted that the offering consists of $1.50 billion aggregate principal amount of senior secured second lien notes due 2027, which will bear interest at a rate of 6.25% per annum, to be issued by Tenet. The size of the offering was increased from the previously announced $750 million aggregate principal amount of notes. Tenet intends to use a portion of the net proceeds from the sale of the notes, after payment of fees and expenses, to fund the redemption and discharge of all $300 million outstanding aggregate principal amount of its 6.75% Senior Unsecured Notes due February 1, 2020 and all $750 million outstanding aggregate principal amount of its 7.50% Senior Secured Second Lien Notes due January 1, 2022. Tenet intends to use the remainder of the net proceeds from the sale of the notes, together with cash on hand and/or borrowings under its revolving credit agreement, after payment of fees and expenses, to fund the repayment upon maturity and discharge of all $468 million outstanding aggregate principal amount of its 5.50% Senior Unsecured Notes due March 1, 2019.
Tenet Healthcare Corporation is a diversified healthcare services company. The Companyâs care delivery network includes USPI Holding Company, Inc. (USPI), which operates or has ownership interests in ambulatory surgery centers and surgical hospitals. The Company also operates acute care and specialty hospitals, as well as other outpatient facilities, including surgical hospitals, and ambulatory surgery centers (ASC), among others. The Company operates through two segments: Hospital Operations and Services, and Ambulatory Care. The Hospital Operations and Services segment, which is comprised of acute care and specialty hospitals, a network of employed physicians and ancillary outpatient facilities, as well as the revenue cycle management and value-based care services that the Company provide to hospitals, health systems, physician practices, employers, and other clients. The Ambulatory Care segment, which is comprised of USPIâs ASCs and surgical hospitals.
TENET HEALTHCARE CORPORATION 
