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Tenet Calls for Partial Redemption of 4.625% Senior Secured First Lien Notes due 2024

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Tenet Healthcare Corporation (NYSE: THC) announced the redemption of $1.100 billion of its 4.625% senior secured first lien notes due July 15, 2024. This strategic move aims to reduce future annual cash interest payments by about $50 million. The debt retirement will be financed through proceeds from the recent sale of five hospitals in Miami-Dade and Southern Broward counties. The redemption will occur on September 10, 2021, at a price of 101.156% of the principal, plus accrued interest, underscoring Tenet's commitment to long-term debt reduction.

Positive
  • Reduction of future annual cash interest payments by approximately $50 million.
  • Debt retirement funded by $1.100 billion proceeds from the sale of five hospitals, aiding in long-term debt reduction.
Negative
  • None.

Tenet Healthcare Corporation (NYSE: THC) today called for the redemption of $1.100 billion of the $1.870 billion aggregate principal amount of its outstanding 4.625% senior secured first lien notes due July 15, 2024 (the “Notes”). As a result, Tenet expects to lower its future annual cash interest payments by approximately $50 million. This retirement of debt will be funded with approximately $1.100 billion of proceeds from the recent sale of the Company’s five hospitals in the Miami-Dade and Southern Broward counties and is part of Tenet’s long-term plan to reduce its debt.

The Notes will be redeemed on September 10, 2021, at a redemption price equal to 101.156% of the principal amount of the Notes being redeemed, together with accrued and unpaid interest.

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 with 102,000 employees. Through an expansive care network that includes United Surgical Partners International, we operate 60 hospitals and more than 460 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.

FAQ

What is the purpose of Tenet Healthcare's redemption of senior secured notes?

Tenet Healthcare aims to reduce future annual cash interest payments by approximately $50 million.

When will Tenet Healthcare redeem its senior secured notes?

The redemption will take place on September 10, 2021.

How much debt is Tenet Healthcare redeeming?

Tenet Healthcare is redeeming $1.100 billion of its senior secured first lien notes.

What is the redemption price for Tenet's senior secured notes?

The redemption price is 101.156% of the principal amount of the notes being redeemed.

How is Tenet Healthcare funding its debt retirement?

The debt retirement is funded by proceeds from the sale of five hospitals in Miami-Dade and Southern Broward counties.

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