Hospital Corporation of America is looking to sell $3 billion of senior secured notes in an effort to stave off more expensive debt.
The Nashville, Tenn.-based for-profit hospital chain will use the proceeds of its $3 billion offering to pay off $1.5 billion in debt that matures in 2019 and $1.25 billion that matures in 2020. Those notes carry interest rates of 8.5 percent and 7.9 percent, respectively.
The remaining $250 million will be used to pay off related fees and expenses, as well as other "general corporate purposes." Bank of America Merrill Lynch, Wells Fargo Securities, Goldman Sachs and nine other major banks will act as the main underwriters for the offering.
More Articles on Hospital Debt:
CHS Prepares $4.6B for HMA Merger
Smart Moves: How Hospitals Manage Risk When Borrowing
Managing Costs: The 411 on Organizing Your Construction Project