Bloomberg News

Tenet Said to Plan $4.6 Billion of Bonds to Fund Vanguard Buyout

September 09, 2013

Tenet Healthcare Corp. (THC:US) is planning to issue $4.6 billion of bonds in its largest sale ever to help fund the purchase of Vanguard Health Systems Inc. (VHS:US)

The third-biggest publicly traded U.S. hospital chain may sell $2.8 billion of 8.5-year bonds and $1.8 billion of seven-year notes this week, according to a person with knowledge of the transaction.

The offering follows a $1.05 billion issue in May and is poised to be the Dallas-based company’s largest on record, according to data compiled by Bloomberg.

Tenet agreed to buy Vanguard in June for about $1.8 billion. The purchase gives Tenet 28 hospitals in the Chicago, Phoenix, Detroit, Boston and San Antonio, Texas, regions.

Bank of America Corp., Barclays Plc, Citigroup Inc. and Wells Fargo & Co. are managing the offering, said the person, who asked not to be identified because terms aren’t set. The bonds may be sold on Sept. 13.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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Companies Mentioned

  • THC
    (Tenet Healthcare Corp)
    • $48.05 USD
    • -0.18
    • -0.37%
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