There is good news for the high-yield bond market, as Nashville, Tenn.-based HCA Holdings has sold $1 billion in junk bonds, according to a Bloomberg report.
The $1 billion deal was originally marketed at $750 million and was sold to yield 5.375 percent, according to the report, which cites data compiled by Bloomberg.
The report states that proceeds from the sale will go toward repaying debt that is owed in 2015.
The HCA deal overall is good news in terms of junk bonds, the report reads.
"I think the high-yield market is in pretty good shape, aside from the energy sector," Margie Patel, a money manager who oversees $1.4 billion for Wells Capital Management in Boston, told Bloomberg. "It's a tale of two markets."
The report cites Bank of America Merrill Lynch indexes, which show that yields on junk bonds rose to 7.45 percent last month, the highest since 2012, but have receded this year to 6.96 percent. As for high-yield energy company debt, it is yielding 9.6 percent, according to the report.
HCA isn't the only organization to recently sell junk bonds. Last month, Louisville, Ky.-based Kindred Healthcare sold $1.35 billion in junk bonds, according to the report.
More articles on healthcare finance:
Navigating in the shifting reimbursement climate: Q&A with ThedaCare CFO Tim Olson
When supply chain isn't just about the supplies
Florida Chamber of Commerce supports expanding health coverage for low-income residents