A Medical Device Daily
Tenet Healthcare (Dallas) reported that it has commenced a tender offer to purchase up to $1 billion of its outstanding 9.875% senior notes due 2014. The tender offer is being made pursuant to an offer to purchase and a related letter of transmittal, each dated May 29. The tender offer will expire at midnight, EDT, on June 25.
Holders of notes that are validly tendered prior to the early tender time of 5:00 p.m., EST, on June 11, and accepted will receive total consideration of $1,000 per $1,000 principal amount of notes, which includes an early tender premium of $30 per $1,000 principal amount of notes, plus any accrued and unpaid interest up to, but not including, the applicable settlement date.
Holders of notes that are validly tendered after the early tender time but on or prior to the expiration of the tender offer and accepted will receive total consideration of $970 per $1,000 principal amount of notes, plus any accrued and unpaid interest up to, but not including, the final settlement date.
Consummation of the tender offer is subject to the satisfaction or waiver of certain conditions, including: a $200 million minimum tender condition and consummation of a new senior secured notes offering with an aggregate principal amount of at least $200 million.
The principal amount of notes to be purchased will be limited to the aggregate principal amount of senior secured notes issued in the notes offering. If the aggregate principal amount of notes tendered exceeds the limit, notes purchased will be prorated. If Tenet has issued at least $1 billion of senior secured notes in the notes offering, it reserves the right, following the early tender time, to accept for purchase all notes validly tendered prior to the early tender time.
Tenet owns and operates acute-care hospitals and related ancillary healthcare businesses, which include ambulatory surgery centers and diagnostic imaging centers.