Tenet Healthcare today announced a private placement offering of $1.35 billion of new senior secured first lien notes maturing in 2031.
Tenet intends to use the net proceeds from the sale of the notes, after payment of fees and expenses, to finance, together with cash on hand, the redemption of all $756 million outstanding of its 4.625% senior secured first lien notes due July 2024 and all $589 million outstanding of its 4.625% senior secured first lien notes due September 2024.
The notes will be guaranteed by certain Tenet subsidiaries and secured on a first lien priority basis by a pledge of the capital stock and other ownership interests of Tenet’s subsidiaries. The notes will be effectively senior to Tenet’s existing and future indebtedness secured on a more junior basis, as well as unsecured indebtedness and other liabilities, to the extent of the value of the collateral securing such borrowings.
Dallas-based Tenet’s network includes United Surgical Partners International, which operates or has ownership interests in more than 465 ambulatory surgery centers and surgical hospitals. Tenet also operates 61 acute care and specialty hospitals, approximately 110 other outpatient facilities, a network of leading employed physicians and a global business center in Manila, Philippines. Read more.
