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HCA completes $5B, 2-part offering; terms

HCA completed a $5 billion, two-part offering of notes late yesterday via joint bookrunners J.P. Morgan, Barclays, Bank of America, Citi, Deutsche Bank, and Wells Fargo. The drive-by offering emerged in the afternoon with an initial target of $1 billion, but quickly grew from there. Pricing for both came at the wide end of price talk. HCA will use proceeds from the SEC-registered deal, and $300 million of borrowings under its ABL, to redeem the $1.578 billion outstanding of 9.625% second-lien PIK toggle notes due 2016, and the $3.2 billion issue of 9.25% second-lien notes due 2016, as well as to pay related fees and expenses. Terms:

Issuer HCA, Inc.
Ratings BB/Ba3
Amount $3 billion
Issue secured notes (off the shelf)
Coupon 6.50%
Price 100
Yield 6.50%
Spread T+386
FRN eq. L+366
Maturity Feb. 15, 2020
Call nc-life
Trade July 26, 2011
Settle Aug. 1, 2011 (T+4)
Books JPM/Barc/BAML/Citi/DB/WF
Jt Leads
Co’s.
Px talk 6.375-6.5%
Notes w/ change of control put @ 101; carries T+50 make-whole call; tranche decreased by $150 million; overall transaction upsized by $4 billion.
Issuer HCA, Inc.
Ratings B-/B3
Amount $2 billion
Issue senior notes (off the shelf)
Coupon 7.50%
Price 100
Yield 7.50%
Spread T+455
FRN eq. L+446
Maturity Feb. 15, 2022
Call nc-life
Trade July 26, 2011
Settle Aug. 1, 2011 (T+4)
Books JPM/Barc/BAML/Citi/DB/WF
Jt Leads
Co’s.
Px talk 7.375-7.5%
Notes w/ change of control put @ 101; carries T+50 make-whole.