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Tenet high-yield bonds price tight to talk, at par, to yield 4.5%; terms

Tenet Healthcare this afternoon completed an offering of secured notes via bookrunners Bank of America, Barclays, Citi, and Wells Fargo, according to sources. Terms on the B+/B1 transaction were inked tight to talk, and an early read from the gray market points to modest secondary market demand on the break. The new deal offers the benchmark credit a significant economic savings to the 10% notes due 2018 targeted in a tender offer. As reported, that paper isn’t callable until 2014, so consideration is essentially matching that of a T+50 make-whole, with the company offering $1,164.50 per bonds, inclusive of a consents premium, a filing shows. Recall that the 10% notes being refinanced date to the depths of the financial crisis in March 2009. Issuance was via a privately negotiated debt swap covering about $1.6 billion of notes due in 2011 and 2012. Terms:

Issuer Tenet Healthcare
Ratings B+/B1
Amount $850 million
Issue secured notes (144A)
Coupon 4.5%
Price 100
Yield 4.5%
Spread T+307
FRN eq. L+296
Maturity April 1, 2021
Call nc-life
Trade Jan. 22, 2013
Settle Feb. 5, 2013 (t+5)
Jt. Books BAML/Barc/CITI/WFS
Co’s. Scotia, MS, SunTrust
Px talk 4.5-4.75%
Notes carries T+50 make-whole provision

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