DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE: THC) established today the pricing
of the previously announced private offering of senior secured second
lien notes maturing in 2022 (the “notes”). A total of $750 million
aggregate principal amount of the notes, which represents an upsize from
its previously announced amount of $500 million and which will bear
interest at a rate of 7.50% per annum, will be issued. The notes will be
effectively senior to Tenet’s existing and future unsecured indebtedness
and other liabilities to the extent of the value of the collateral
securing such borrowings, and will be effectively subordinated to
Tenet’s first-priority secured debt and obligations to the extent of the
value of the collateral securing such amounts. The notes will be
guaranteed on a subordinated basis and secured by a second lien pledge
of the capital stock and other ownership interests of certain of Tenet’s
subsidiaries. The net proceeds of the notes will be used, after payment
of fees and expenses, to repay indebtedness outstanding under Tenet’s
senior secured revolving credit facility and for general corporate
purposes.
The notes to be offered will not be registered under the Securities Act
of 1933, as amended (the “Securities Act”), or any other state
securities laws. As a result, they may not be offered or sold in the
United States or to any U.S. persons, except pursuant to an applicable
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act. Accordingly, the notes will be
offered only to “qualified institutional buyers” under Rule 144A of the
Securities Act or, outside the United States, to persons other than
“U.S. persons” in compliance with Regulation S under the Securities Act.
A confidential offering memorandum for the notes will be made available
to such eligible persons. The offering will be conducted in accordance
with the terms and subject to the conditions set forth in such offering
memorandum.
This news release is neither an offer to sell nor a solicitation of an
offer to buy, nor shall there be any sale of, these securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful.
About Tenet Healthcare
Tenet Healthcare Corporation is a diversified healthcare services
company with 130,000 employees united around a common mission: to help
people live happier, healthier lives. Through its subsidiaries,
partnerships and joint ventures, including United Surgical Partners
International, the company operates 79 general acute care hospitals, 20
short-stay surgical hospitals and approximately 470 outpatient centers
in the United States, as well as nine facilities in the United Kingdom.
Tenet’s Conifer Health Solutions subsidiary provides technology-enabled
performance improvement and health management solutions to hospitals,
health systems, integrated delivery networks, physician groups,
self-insured organizations and health plans. For more information,
please visit www.tenethealth.com.
The terms "THC," "Tenet Healthcare Corporation," "the company," "we,"
"us" or "our" refer to Tenet Healthcare Corporation or one or more of
its subsidiaries or affiliates as applicable.
This release contains “forward-looking statements” – that is, statements
that relate to future, not past, events. In this context,
forward-looking statements often address our expected future business
and financial performance and financial condition, and often contain
words such as “expect,” “assume,” “anticipate,” “intend,” “plan,”
“believe,” “seek,” “see,” or “will.” Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
Particular uncertainties that could cause our actual results to be
materially different than those expressed in our forward-looking
statements include, but are not limited to, uncertainties about the
closing of the offering, the expected use of proceeds and the factors
disclosed under “Forward-Looking Statements” and “Risk Factors” in our
Form 10-K for the year ended December 31, 2015, Form 10-Q for the
quarterly period ended September 30, 2016 and other filings with the
Securities and Exchange Commission. Among other things, these factors
include the potentially heightened risk of repeal, modification or other
material change in the Patient Protection and Affordable Care Act
following the outcome of recent Presidential and Congressional elections.
Tenet uses its company website to provide important information to
investors about the company including the posting of important
announcements regarding financial performance and corporate developments.
