Tenet To Sell $300M Of Convertible Preferred Stock

DALLAS (AP) — Tenet Healthcare Corp. said Monday it would sell 300,000 shares of mandatory convertible preferred stock for $300 million.

The company plans to use the proceeds to buy back senior notes through public or private transactions.

The underwriter, Goldman Sachs, has the option to buy an additional 15 percent of the shares, or 45,000 shares, to cover overallotments.

If the shares are not converted to common stock before Oct. 1, 2012, they will automatically convert into a yet-to-be-determined amount on that date. The conversion rates will be set by the company and Goldman Sachs.

The company currently has about 481 million shares outstanding.

The potential dilution to shareholders sent Dallas-based Tenet's stock down 25 cents, or 4.3 percent, to $5.60 in aftermarket trading. The shares closed regular trading at $5.85 Monday.