Dallas-based Tenet Healthcare shared Sept. 8 a private placement offering of $1.5 billion in new senior notes that are due 2034. The proceeds are set to refinance $1.5 billion of the system’s outstanding notes.
Tenet plans to use net proceeds from the notes, combined with cash on hand, to redeem the aggregate principal amount on its 5.125% senior secured first lien notes due November 2027, according to a news release from the system.
“The notes will be Tenet’s unsecured obligations and will rank equally in right of payment with its existing and future senior unsecured obligations, will rank senior in right of payment to all of Tenet’s existing and future unsecured subordinated obligations, will be effectively subordinated to all of Tenet’s existing and future senior secured obligations to the extent of the value of the collateral securing Tenet’s senior secured obligations and will be structurally subordinated to all obligations and liabilities of Tenet’s subsidiaries to the extent of the value of the assets of such subsidiaries,” the release said.
The notes will be sold only to those reasonably believed to be “qualified institutional buyers” under Rule 144A of the Securities Act and to non-U.S. persons in compliance with Regulation S under the Securities Act. They will not be registered under the Securities Act of 1933.
Tenet comprises 50 hospitals, more than 535 ambulatory surgery centers and surgical hospitals, and approximately 160 additional outpatient centers and care sites. It has 100,000 employees, according to its website.
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