The for-profit hospital operator issued 7.5 percent senior first-lien notes that mature in 2025. The notes are secured against subsidiaries of Tenet.
After paying fees and expenses, Tenet intends to use the proceeds to pay off a portion of an existing $500 million loan and for “general corporate purposes.”
Tenet announced the debt offering during an investor meeting April 2. During the meeting, Tenet said it would issue $500 million in senior notes that would be used to pay off debts or become cash on hand. But a few hours after the meeting, Tenet increased the offering of senior secured first lien notes to $700 million.
Due to the financial uncertainties brought on by the COVID-19 pandemic, Tenet has also undertaken other measures to raise cash, including increasing the borrowing capacity under its revolving line of credit by $500 million.
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