HCA Holdings' wholly owned subsidiary HCA has proposed to offer $5 billion in two parts — senior notes and secured notes — to refinance existing debt, according to a SEC filing.
The updated proposal comes shortly after the healthcare company proposed $1 billion in senior notes. HCA had intended to use net proceeds of the initial offering to redeem and repurchase $900 million of its $1.578 billion second lien toggle notes, which carry an approximate 10 percent interest rate and are due 2016.
HCA has since significantly boosted its offering to $5 billion in two parts. According to the securities filing, HCA intends to sell $3 billion in secure notes carrying an interest rate of 6.5 percent, which are due 2020. In addition, the company plans to sell $2 billion in senior notes carrying an interest rate of 7.5 percent, which are due 2022.
Net proceeds from the notes are projected to be $4.94 billion, which will be used to buy back nearly $4.8 billion in two note issues due 2016. Both note issues carry more than a 9.25 percent interest rate.
The news of the proposed public offering comes after HCA Holdings announced its earnings for the second quarter of 2011 ending June 30 plummeted nearly 22 percent from $293 billion in 2Q 2010. Its weak earning caused HCA's shares to drop 19 percent.
Read HCA's SEC filing about its $5 billion bond offering (pdf).
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The updated proposal comes shortly after the healthcare company proposed $1 billion in senior notes. HCA had intended to use net proceeds of the initial offering to redeem and repurchase $900 million of its $1.578 billion second lien toggle notes, which carry an approximate 10 percent interest rate and are due 2016.
HCA has since significantly boosted its offering to $5 billion in two parts. According to the securities filing, HCA intends to sell $3 billion in secure notes carrying an interest rate of 6.5 percent, which are due 2020. In addition, the company plans to sell $2 billion in senior notes carrying an interest rate of 7.5 percent, which are due 2022.
Net proceeds from the notes are projected to be $4.94 billion, which will be used to buy back nearly $4.8 billion in two note issues due 2016. Both note issues carry more than a 9.25 percent interest rate.
The news of the proposed public offering comes after HCA Holdings announced its earnings for the second quarter of 2011 ending June 30 plummeted nearly 22 percent from $293 billion in 2Q 2010. Its weak earning caused HCA's shares to drop 19 percent.
Read HCA's SEC filing about its $5 billion bond offering (pdf).
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