HCA Announces Proposed Public Offering of Senior Secured Notes

Rhea-AI Summary

HCA Healthcare announced that its subsidiary, HCA Inc., plans to offer senior secured notes, subject to market conditions. The actual terms, including interest rates and amounts, will be determined during pricing. The net proceeds will be utilized to repay a portion of HCA's $1.455 billion and $1.131 billion senior secured term loan facilities and for general corporate purposes. BofA Securities and Wells Fargo Securities are managing the offering. This transaction is part of HCA's strategy to optimize its capital structure.

Positive

• Proceeds will be used to repay $1.455 billion and $1.131 billion senior secured term loans, improving financial stability.
• Offering managed by reputable firms (BofA Securities, Wells Fargo Securities) enhances credibility.

Negative

• Dilution risk exists for existing shareholders if the offering affects share value.

HCA Healthcare, Inc. (NYSE: HCA) today announced that its wholly owned subsidiary, HCA Inc., proposes to offer senior secured notes, subject to market and other considerations. Actual terms of the notes, including interest rate and principal amount, will depend on market conditions at the time of pricing. HCA Inc. intends to use a combination of cash and the net proceeds from this offering to repay all or a portion of HCA’s outstanding $1.455 billion senior secured term loan B-12 facility and $1.131 billion senior secured term loan B-13 facility, and for general corporate purposes.

BofA Securities, Inc. and Wells Fargo Securities, LLC are acting as the joint book-running managers for the offering.

The offering of the notes is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission. The offering is being made only by means of a preliminary prospectus supplement and the accompanying prospectus, copies of which may be obtained from BofA Securities, Inc., NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC 28255-0001, Attn: Prospectus Department, by telephone (800) 294-1322 or by emailing: dg.prospectus_requests@bofa.com; or from Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attn: WFS Customer Service, by telephone (toll-free): 1-800-645-3751 or by emailing: wfscustomerservice@wellsfargo.com.

You may also visit www.sec.gov to obtain an electronic copy of the prospectus and related preliminary prospectus supplement.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

FORWARD-LOOKING STATEMENTS

Information provided and statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this press release and HCA assumes no obligation to update the information included in this press release. Such forward-looking statements include the expected use of proceeds from the offering. These statements often include words such as “approximate,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about HCA’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond HCA’s control. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance or occurrence of events and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Although HCA believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. More information about potential risks and uncertainties that could affect the Company’s business and results of operations is included in the “Risk Factors” and “Forward-Looking Statements” sections in the Annual Report on Form 10-K filed by the Company with the SEC on February 19, 2021 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 filed by the Company with the SEC on April 30, 2021. Unless otherwise required by law, HCA also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made in this press release.

All references to the “Company” and “HCA” as used throughout this press release refer to HCA Healthcare, Inc. and its affiliates.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210621005437/en/

FAQ

What is HCA's planned senior secured notes offering about?

HCA Inc. intends to offer senior secured notes to repay portions of its term loans and for general corporate purposes.

What will the proceeds from HCA's notes offering be used for?

The proceeds will be used to repay HCA's $1.455 billion and $1.131 billion senior secured term loans.

Who is managing HCA's senior secured notes offering?

BofA Securities and Wells Fargo Securities are acting as joint book-running managers for the offering.

What risks are associated with HCA's notes offering?

There is a risk of dilution for existing shareholders if the offering impacts share value.