Franklin, Tenn.-based Community Health Systems and Dallas-based Tenet Healthcare are tinkering with their financing, as the for-profit hospital operators announced new undertakings related to their debt and stock.
Yesterday, CHS said it started an offer to exchange $2 billion of 8 percent senior notes due in 2019. The exchange offer will expire May 24.
Today, Tenet announced (pdf) it repurchased $299 million of "mandatory convertible preferred stock." Tenet President and CEO Trevor Fetter said the repurchase of the preferred stock "avoids the potential issuance of up to 51 million additional common shares" that would have been available Oct. 1. "These aggressive actions to restructure our balance sheet provide a strong signal of management's confidence in the value of [Tenet's] common stock," he said.
Tenet also issued $150 million of 8 percent senior notes due in 2020 and $141.2 million of 6.25 percent senior secured notes due in 2018.
In connection with those two transactions, Tenet released preliminary results for the first quarter ended March 31, 2012. Net operating revenue is expected to be 2.2 percent higher year-over-year, and the better-than-expected first quarter pushed Tenet executives to raise the 2012 outlook for adjusted EBITDA by $25 million.
CHS is expected to announce its first quarter earnings today after the regular closing time of trading. Tenet is expected to announce its first quarter earnings May 8.
Yesterday, CHS said it started an offer to exchange $2 billion of 8 percent senior notes due in 2019. The exchange offer will expire May 24.
Today, Tenet announced (pdf) it repurchased $299 million of "mandatory convertible preferred stock." Tenet President and CEO Trevor Fetter said the repurchase of the preferred stock "avoids the potential issuance of up to 51 million additional common shares" that would have been available Oct. 1. "These aggressive actions to restructure our balance sheet provide a strong signal of management's confidence in the value of [Tenet's] common stock," he said.
Tenet also issued $150 million of 8 percent senior notes due in 2020 and $141.2 million of 6.25 percent senior secured notes due in 2018.
In connection with those two transactions, Tenet released preliminary results for the first quarter ended March 31, 2012. Net operating revenue is expected to be 2.2 percent higher year-over-year, and the better-than-expected first quarter pushed Tenet executives to raise the 2012 outlook for adjusted EBITDA by $25 million.
CHS is expected to announce its first quarter earnings today after the regular closing time of trading. Tenet is expected to announce its first quarter earnings May 8.
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