Tenet sells $1 billion in notes, refinances debt

Tenet Healthcare Corp., Santa Barbara, Calif., said it has sold $1 billion in 10-year notes in a private placement of debt and used $450 million of the amount to repurchase debt due in 2006 and 2007. Tenet said the transactions will leave the company with $1.1 billion in available cash. Recent news reports have indicated that Tenet and the federal government are discussing a settlement, possibly for $1 billion, of the many federal investigations into Tenet's business practices. However, Tenet spokesman Steven Campanini said, "This transaction is in no way linked with recent market and media speculation about a possible settlement with the Department of Justice." Tenet refinanced its debt to spread out the maturities, Campanini said. While the company continues to try to resolve the investigations, it is too early to speculate on the size and shape of a possible settlement, he said, reiterating statements Tenet made last week in response to the news reports. Tenet owns or operates 99 hospitals but is divesting itself of 30. -- by Vince Galloro