Summary
HCA Healthcare, Inc. (HCA) announced on June 22, 2017, the completion of a public offering of $1.5 billion in aggregate principal amount of 5.500% Senior Secured Notes due 2047. These notes are guaranteed on a senior unsecured basis by the Parent Guarantor and on a senior secured basis by certain subsidiaries. The net proceeds, estimated at approximately $1.483 billion after expenses, are intended for general corporate purposes, including funding acquisitions and redeeming the company's outstanding 8.00% Senior Notes due 2018. This transaction represents a significant capital raise aimed at strengthening the company's balance sheet and facilitating strategic growth initiatives. The new notes mature in 2047, offering long-term financing. The specific terms outline the ranking of the notes, guarantees, and collateral securing the obligations, providing clarity on the credit profile for investors.
Key Highlights
- 1HCA Inc. issued $1.5 billion of 5.500% Senior Secured Notes due 2047.
- 2Net proceeds from the offering are approximately $1.483 billion.
- 3Proceeds will be used for general corporate purposes, including acquisitions and the redemption of $500 million of 8.00% Senior Notes due 2018.
- 4The Notes are guaranteed on a senior unsecured basis by HCA Healthcare, Inc. and on a senior secured basis by certain subsidiaries.
- 5The Notes are secured by first-priority liens on certain assets, ranking pari passu with existing first lien notes and the cash flow credit facility.
- 6The collateral securing the Notes may be released if HCA achieves investment grade ratings from both Moody's and S&P.
- 7The Indenture includes covenants limiting liens, sale and lease-back transactions, asset sales, and consolidations/mergers, with provisions for release or modification upon achieving investment grade ratings.