Tenet Healthcare Corp. announced a private placement to sell $3.78 billion of newly issued notes to refinance $3.54 billion in existing debt.
Tenet would issue $830 million in senior secured first-lien notes due 2024 and established a unit, THC Escrow Corp. III, to issue other notes.
THC Escrow would issue $1.04 billion in senior secured first-lien notes due 2024, $1.41 billion in senior secured second-lien notes due 2025 and $500 million in senior unsecured notes due 2025.
Tenet intends to use the proceeds from the notes to fund the redemption and discharge of $3.54 billion of its outstanding senior notes, due between 2018 and 2020.
The company said that after redeeming the outstanding notes, THC Escrow Corp.'s notes will become Tenet's obligations.