Tenet Healthcare Corp., Dallas, announced an offer to exchange up to $1.6 billion in debt due in 2011 and 2012 for new notes that will mature in 2014 and 2019, thereby stretching out the companys debt maturities. The company also announced preliminary results for the fourth quarter and for 2008 as a whole, saying it expects a fourth-quarter profit of about $5 million after a loss of $75 million in 2007s fourth quarter.
The debt exchange offer is part of Tenets response to the tough economy and high uncertainty about the future, said Trevor Fetter, Tenets president and chief executive officer. The company also will cut more than $100 million in gross costs in 2009 at both the hospital and corporate levels. Capital expenditures also might be cut in markets where Tenets competitors have already restrained their capital spending, Fetter said.
Tenet plans to announce its full fourth-quarter and year-end results on Feb. 24.