Tenet Healthcare Corporation (NYSE: THC) announced today the successful completion of its previously announced private offering of $850 million aggregate principal amount of its 4.50% Senior Secured Notes due 2021.
The proceeds from the offering will be used to purchase Tenet’s 10.0% Senior Secured Notes due 2018 (the “Notes”) in a tender offer. Tenet will use any remaining net proceeds for purchases of its other outstanding senior secured 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. In connection with the tender offer, Tenet is also soliciting consents for certain amendments to the related indenture governing the Notes. The terms of the tender offer and the consent solicitation are contained in an offer to purchase and consent solicitation statement dated January 22, 2013 and a related consent and letter of transmittal. The tender offer will expire at 12:00 midnight, New York City time, on February 19, 2013.
As of the consent payment deadline of 5:00 p.m., New York City time, on February 4, 2013, approximately $644.5 million aggregate principal amount of the outstanding Notes had been validly tendered and not validly withdrawn.
Holders that validly tendered prior to the consent payment deadline and whose Notes were accepted will receive total consideration of $1,164.50 per $1,000 principal amount of purchased Notes, which includes a consent payment of $30.00 per $1,000 principal amount of Notes, plus accrued and unpaid interest up to, but not including, the initial settlement date of February 5, 2013.
Holders that validly tender after the consent payment deadline, but prior to the expiration of the tender offer, and whose Notes are accepted will receive the tender offer consideration of $1,134.50 per $1,000 principal amount of Notes, plus accrued and unpaid interest up to, but not including, the final settlement date, which is expected to be February 20, 2013. Holders of the Notes that tender after the consent payment deadline will not receive a consent payment. As the withdrawal time of 5:00 p.m., New York City time, on February 4, 2013 has passed, any tendered Notes may not be withdrawn except as required by law.