HCA has decided to float a $300 million bond offering to repay part of its sizeable bank debt and amend terms of some of its loans. The offering would be the company's first since it was purchase in a $33 billion leveraged buyout in November 2006.
HCA is hitting the bond market to manage its existing load. The company has $12 billlion in bank debt maturing in both 2012 and 2013, and company leaders probably won't be able to handle the debt by refinancing given long-term stresses in the financial market.
HCA's debt load can't help much either. The hospital firm has cut its debt by just $1.4 billion since the buyout, leaving its total debt-to-earnings ratio at a relatively high 5.8 times to 6.6 times.
However, it should have access to bond financing, nonetheless. Of late, analysts note, investors are increasingly willing to buy into high-yield, high-risk offerings like this one.
To learn more about HCA's finances:
- read this article from The Tennessean
Related Articles:
HCA admissions up, but net income down by 23 percent for '08
HCA boosts income, stabilizes bad debt expense
HCA sees debt rising until patients get insured