Dallas-based Tenet Healthcare has upsized its previously shared $1.5 billion private senior notes up to $2 billion, according to a Sept. 8 news release.
The health system agreed to issue and sell $2 billion in aggregate principal amount of senior notes due Sept. 15, 2034, carrying a 6.250% annual interest rate. The note offering is expected to close Sept. 22, subject to customary conditions.
Tenet plans to use the net sale proceeds from the notes, together with cash on hand, to redeem all $1.5 billion of its outstanding 5.125% senior secured first lien notes due November 2027. They will also be used for the partial redemption of an additional $500 million of its outstanding 6.125% senior notes due in October 2028, the release said.
The notes are the system’s unsecured obligation and will rank equally with its existing and future senior unsecured obligations.
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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