HCA, Nashville, plans to issue about $2 billion in new debt to fund a $2.50 per-share special cash dividend as well as refinance existing debt coming due next year.
The hospital giant disclosed its plans as it offered a preview of its third-quarter results, which showed gains in revenue and net income, but came in slightly under analyst expectations.
Shareholders that stand to profit from the dividend include its two largest private-equity holders, Bain Capital and Kohlberg Kravis Roberts & Co., which collectively hold about 40% of the company, or about 89.5 million and 87.5 million shares, respectively, as of June 30.
HCA will pay out the dividend in the fourth quarter using its existing revolving credit facilities as well as the new debt. The company will issue about $2 billion in senior secured and senior unsecured notes, according to a news release. In addition to funding the dividend, proceeds from the offering will be used to repay an existing term loan facility that comes due in November 2013.