Tenet Announces Upsizing And Pricing Of Its Private Offering Of Senior Secured Second Lien Notes

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.

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