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Tenet Calls for Full Redemption of 7.500% Senior Secured First Lien Notes due 2025
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Tenet Healthcare Corporation (NYSE: THC) announced the redemption of all $700 million of its 7.500% senior secured first lien notes due April 1, 2025. The redemption will occur on February 23, 2022, using available cash, resulting in a total expected cost of approximately $730 million. This strategic move will reduce future annual cash interest payments by around $53 million, indicating a proactive effort to improve financial health.
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Redemption of $700 million in senior secured notes will reduce future annual cash interest payments by $53 million.
Total expected redemption cost is approximately $730 million, demonstrating strong cash position.
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DALLAS--(BUSINESS WIRE)--
Tenet Healthcare Corporation (NYSE: THC) yesterday called for the redemption of all of the $700 million aggregate principal amount outstanding of its 7.500% senior secured first lien notes due April 1, 2025 (the “Notes”), which were issued pursuant to the Indenture, dated as of November 6, 2001, by and between Tenet and The Bank of New York Mellon Trust Company, N.A., as successor trustee to The Bank of New York, as supplemented by the Thirty-Fourth Supplemental Indenture, dated as of April 7, 2020, thereto (collectively, the “Indenture”).
The Notes will be redeemed on February 23, 2022 (the “Redemption Date”) with available cash on hand, at a redemption price equal to 100% of the principal amount of the Notes being redeemed plus the make-whole premium set forth in the Indenture (the “Redemption Price”), together with accrued and unpaid interest thereon, if any, to, but not including, the Redemption Date. Tenet expects the Redemption Price to be approximately $730 million, and through such redemption, to lower its future annual cash interest payments by approximately $53 million.
Cautionary Statement
This release contains “forward-looking statements” - that is, statements that relate to future, not past, events. In this context, forward-looking statements often address Tenet’s expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,” “plan,” “predict,” “project,” “seek,” “see,” “target,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain, especially with regard to developments related to COVID-19. Particular uncertainties that could cause Tenet’s actual results to be materially different than those expressed in Tenet’s forward-looking statements include, but are not limited to, the impact of the COVID-19 pandemic and other factors disclosed under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended December 31, 2020, any subsequent Form 10-Q filings and other filings with the Securities and Exchange Commission.
About Tenet Healthcare
Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in Dallas. Through an expansive care network that includes United Surgical Partners International, we operate 60 hospitals and operate or have an ownership interest in approximately 550 other healthcare facilities, including surgical hospitals, ambulatory surgery centers, imaging centers and other care sites and clinics. We also operate Conifer Health Solutions, which provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients. Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve. For more information, please visit www.tenethealth.com.
