Tenet Healthcare Announces Closing of Its Mandatory Convertible Preferred Stock Offering and Repurchase of $300 Million of Its Outstanding Senior Notes
DALLAS – September 25, 2009 – Tenet Healthcare Corporation (NYSE: THC) announced today that it has completed its previously announced registered public offering of 7.0% mandatory convertible preferred stock by selling 345,000 shares, including 45,000 shares sold pursuant to the underwriters' option to purchase additional shares, at a public offering price of $1,000 per share, for aggregate gross proceeds of $345 million. The net proceeds to the Company after deducting estimated expenses and underwriting discounts are expected to be approximately $335 million. The Company used $315 million of the net proceeds to repurchase $300 million aggregate principal amount of its outstanding 9.250% senior notes due 2015 through a privately negotiated transaction. Goldman, Sachs & Co. served as the sole book-running manager, Barclays Capital Inc. served as lead manager, and Moelis & Company LLC and Wells Fargo Securities, LLC served as co-managers of the offering.
Unless converted earlier at the option of the holder or the Company, the mandatory convertible preferred stock will convert automatically into a variable number of shares of the Company’s common stock on October 1, 2012. The mandatory convertible preferred stock will pay cumulative dividends at a rate of 7.0% per annum on the liquidation preference of $1,000 per share, payable quarterly in arrears.
The shares of mandatory convertible preferred stock were issued pursuant to a prospectus supplement to the prospectus filed as a part of the under the Company’s existing effective shelf registration statement. Copies of the prospectus supplement and the accompanying prospectus may be obtained from Goldman, Sachs & Co., Attention: Prospectus Department,
