Tenet Healthcare Corporation (NYSE: THC) announced today the pricing of its previously announced private offering of senior secured notes maturing in 2020 and senior unsecured notes maturing in 2020. A total of $500 million aggregate principal amount of senior secured notes, which will bear interest at a rate of 4.75% per annum, and $300 million aggregate principal amount of senior unsecured notes, which will bear interest at a rate of 6.75% per annum, will be issued. The senior secured notes will rank senior to Tenet’s existing and future subordinated indebtedness, be effectively senior to Tenet’s existing and future unsecured indebtedness and other liabilities to the extent of the value of the collateral securing the senior secured notes or guarantees thereon, and will rank pari passu with Tenet’s 6.25% senior secured notes due 2018, which were issued in November 2011 and April 2012, 10% senior secured notes due 2018, which were issued in March 2009, and 8.875% senior secured notes due 2019, which were issued in June 2009, and similarly will be guaranteed by and secured by a pledge of the capital stock and other ownership interests of certain of Tenet’s subsidiaries, and will be subordinated to Tenet’s obligations under its senior secured revolving credit facility, and any of its subsidiaries’ secured guarantees thereof, to the extent of the value of the collateral securing borrowings under such facility. The senior unsecured notes will be senior unsecured obligations of Tenet that will rank equally with Tenet’s other existing and future senior unsecured indebtedness, will rank senior to Tenet’s existing and future subordinated indebtedness and will be effectively subordinated to any existing and future secured indebtedness of Tenet to the extent of the value of the collateral securing such secured indebtedness. The proceeds from the offering will be used to purchase Tenet’s 7.375% senior notes due 2013 in a tender offer. Tenet will use remaining net proceeds for purchases of its outstanding senior notes through public 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. The offering of both the senior secured notes and senior unsecured notes is expected to close on October 16, 2012, subject to customary closing conditions.
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