HCA Healthcare Plans Debt Issuance

By Chris Stiles • Tuesday, April 28 03:22 • Permanent Link

HCA Healthcare said April 27 it plans to raise new senior notes through its wholly owned subsidiary, HCA Inc., with the exact size, maturity and coupon still to be determined by market conditions.

The company said the proceeds would go toward general corporate purposes, including repayment of borrowings under its $4.0 billion commercial paper program. HCA also said it may use part of the proceeds to retire two existing note issues: $1.5 billion of 5.250% senior notes due June 2026 and $1.0 billion of 5.375% senior notes due September 2026.

That means HCA is targeting up to $2.5 billion of near-term debt maturities for possible redemption, while also keeping the option to refinance short-term borrowings under its commercial paper facility. The offering is being led by Citigroup, Barclays, BofA Securities and J.P. Morgan. The market has reacted to these announcements by moving the company's shares -8.77% to a price of $432.46. For the full picture, make sure to review HCA Healthcare's 8-K report.

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