By Devika Patel and Cristal Cody
Knoxville, Tenn., Aug. 11 – Universal Health Services, Inc. priced $1.2 billion of fixed-rate senior notes (BBB-/BBB-) in two tranches, according to a press release on Wednesday.
A $700 million tranche of 1.65% notes due Sept. 1, 2026 priced with a spread of 85 basis points over Treasuries, tighter than initial spread talk in the 110 bps area.
Universal Health sold $500 million of 2.65% notes due Jan. 15, 2032 at 133 bps over Treasuries. Initial price talk on these notes was in the 155 bps area over Treasuries.
Bookrunners were BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Truist Securities Inc.
Proceeds will be used to redeem all $400 million of the company’s 5% senior secured notes due 2026 on or about Sept. 13, to repay debt under its senior credit facility and for general corporate purposes.
Universal Health is a King of Prussia, Pa.-based health care management company.
| Issuer: | Universal Health Services, Inc.
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| Amount: | $1.2 billion
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| Description: | Senior notes
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| Bookrunners: | BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Truist Securities Inc.
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| Announcement date: | Aug. 11
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| Settlement date: | Aug. 24
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| Ratings: | S&P: BBB-
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| Fitch: BBB-
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| Distribution: | Rule 144A and Regulation S
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| Notes due 2026
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| Amount: | $700 million
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| Maturity: | Sept. 1, 2026
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| Coupon: | 1.65%
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| Spread: | 85 bps over Treasuries
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| Price guidance: | 110 bps area over Treasuries
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| Notes due 2032
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| Amount: | $500 million
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| Maturity: | Jan. 15, 2032
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| Coupon: | 2.65%
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| Spread: | 133 bps over Treasuries
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| Price guidance: | 155 bps area over Treasuries
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