Tenet has issued a private offering of senior secured notes. Its plan is to sell $850 million in total principal; the secured notes will mature in 2021:
The senior secured notes will be guaranteed by and secured by a pledge of the capital stock and other ownership interests of certain of Tenet’s subsidiaries. The proceeds from the offering will be used to purchase Tenet’s 10.0% senior secured notes due 2018 in a tender offer.Tenet will use any remaining net proceeds for repurchases of its outstanding senior secured notes through publicly or privately negotiated transactions, and for general corporate purposes, including the repayment of indebtedness and drawings under its senior secured revolving credit facility and strategic acquisitions.
