Dallas-based Tenet Healthcare made a private offering of senior secured notes in an effort to refinance $768 million in outstanding notes.
Five things to know:
1. The offering consists of $750 million in aggregate principal amount of newly issued senior secured second lien notes due 2027. Tenet issued the notes.
2. The company plans to use the net proceeds, after paying fees and expenses, to redeem and discharge its $300 million outstanding aggregate principal amount of the 6.75 percent senior unsecured notes due Feb. 1, 2020.
3. Tenet will use the remainder of the proceeds and cash on hand and/or borrowing under its revolving credit agreement to repay the $468 million outstanding aggregate principal amount of its 5.50 percent senior unsecured notes due March 1, 2019, upon maturity.
3. Certain Tenet subsidiaries will guarantee the notes and they are secured on a second lien priority basis by a pledge of capital stock and other ownership interests.
4. United Surgical Partners International, which operates 390 ASCs, surgical hospitals, imaging centers and urgent care centers, is part of Tenet.