Tenet Healthcare prices $2B senior notes offering at 6.25%

Tenet Healthcare Corporation (NYSE: THC) has priced a private placement of $2.0 billion in senior notes due September 15, 2034, bearing interest at 6.250% per annum, according to a company statement.

The offering was upsized from an initially announced $1.5 billion. Completion is expected on September 22, 2026, subject to customary closing conditions.

Tenet said it intends to use the net proceeds, together with cash on hand, to redeem all $1.5 billion of its outstanding 5.125% senior secured first lien notes due November 2027, and to partially redeem $500 million of its 6.125% senior notes due October 2028.

The notes will be unsecured obligations, ranking equally with Tenet's existing and future senior unsecured obligations. They will be effectively subordinated to Tenet's senior secured obligations to the extent of the value of the collateral securing those obligations, and structurally subordinated to obligations of Tenet's subsidiaries.

The notes will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers under Rule 144A or to non-U.S. persons under Regulation S.

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