HCA, Nashville, said in a securities filing that it will not exercise an option to issue new bonds in lieu of an interest payment due in November on $1.5 billion in 10-year notes that partly financed the companys $33 billion leveraged buyout in 2006. Last November, HCA announced that it was exercising this option for an interest payment that is due this month, saying at the time that it would enable the company to hold on to $144 million in cash. Under the terms of the notes, HCA said in the filing, it has this option for every semiannual interest payment due until November 2011.
Last month, HCA issued $1.5 billion in new bonds to partially refinance term loans that come due in 2012 and 2013. In February, $300 million raised in new bonds also went toward repaying the term loans, which totaled $11.55 billion when they were initially issued.