Tenet Announces Private Offering of $500M Senior Secured Notes and $300M Senior Unsecured Notes
Tenet Healthcare Corporation (NYSE: THC) announced today that it is offering to sell $500 million aggregate principal amount of senior secured notes maturing in 2020 and $300 million aggregate principal amount of senior unsecured notes maturing in 2020 through a private placement. The senior secured notes will be guaranteed by and secured by a pledge of the capital stock and other ownership interests of certain of Tenet's subsidiaries. The proceeds from the offering will be used to purchase Tenet's 7.375% senior notes due 2013 in a tender offer. Tenet will use remaining net proceeds for repurchases of its outstanding senior notes through publicly or privately negotiated transactions, and for general corporate purposes, including the repayment of indebtedness and drawings under its senior secured revolving credit facility and strategic acquisitions.
The notes being offered have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any 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 are being 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 each of the senior secured notes and senior unsecured notes, dated today, will be made available to such eligible persons. The offering is being conducted in accordance with the terms and subject to the conditions set forth in the offering memorandums.
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