Tenet Healthcare Corporation Announces Private Offering of Senior Secured Notes to Refinance $768 Million in Outstanding Notes
January 22, 2019 at 07:26 am EST
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Tenet Healthcare Corporation announced that it intends to refinance $768 million of its currently outstanding notes by offering to sell $750 million of newly issued notes through a private placement. The offering consists of $750 million in aggregate principal amount of newly issued senior secured second lien notes due 2027 issued by Tenet. 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. 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. The notes will be guaranteed by certain of Tenet’s subsidiaries and secured on a second 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 unsecured indebtedness and other liabilities to the extent of the value of the collateral securing such borrowings, and will be effectively subordinated to Tenet’s first-priority secured debt and obligations to the extent of the value of the collateral securing such amounts. 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 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.
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 
