Approximately 97 percent of HCA’s current stock is held by Kohlberg Kravis Roberts, Bain Capital and the private equity arm of Bank of America, according to the Tennessean report.
The dividends will be financed by the sale of $1.5 billion in junk debt maturing in 2021, along with the use of HCA credit lines. The large hospital operator system will use a newly formed company, HCA holdings, to issue the unsecured $1.5 billion, according to a Wall Street Journal report.
This will be the third dividend this year from HCA, bringing the total of dividends issued to $4.25 billion. When bought out and privatized in 2006, investors initially paid $5.5 billion, according to the Wall Street Journal report.
The payout plans were announced as HCA revealed a 24 percent increase in Q3 net income, boosting it to $243 million. Revenues increased 1.5 percent despite inpatient admissions declining 0.6 percent due to fewer deliveries and less H1N1 cases.
HCA filed for an approximate $4.6 billion initial public offering in May, but delayed the IPO in October, pushing it back until 2011.
Read more about hospitals and finances:
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