HCA issues $1.4 billion in senior secured notes
HCA, Nashville, said in a securities filing that it issued $1.4 billion in 10½-year, senior secured notes, or 40% more than the $1 billion in notes it initially proposed to sell when it announced the issue earlier this month (March 8, p. 12). The bonds carry interest of 7.25%, payable in cash semiannually. As previously reported, the proceeds will be used to pay down three term loans that will come due in 2012 and 2013, so the issue does not add to the company’s debt. In January, HCA announced a $1.75 billion distribution to shareholders that will, in part, rely on new borrowing under the company’s credit facilities, adding to the debt of $25.67 billion that HCA recorded on its balance sheet as of Dec. 31, 2009.