Tenet Healthcare Corp., Dallas, plans to issue $750 million in new notes (PDF) due in 2018 through a private placement, according to a news release.
Tenet to issue $750 million in new notes
The proceeds of the offering will be used to repurchase bonds due in 2015, with any remaining amounts used to pay down other debt, according to the release. Only qualified institutional buyers and foreign investors may purchase the notes, according to Tenet. The interest rate of the proposed offering was not disclosed publicly, although a confidential offering memorandum includes terms and conditions, according to the release.
Tenet also announced a tender offer for the 2015 notes (PDF), of which $714 million are outstanding, according to a second news release. The offer is good through Nov. 18. The 2015 notes carry an interest rate of 9%.
Tenet said earlier this week that volume growth and cost-cutting partially offset lower acuity among Medicare patients. Tenet also reported that most of its volume growth was in Medicaid patients.
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