UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 23, 2024 (
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Item 1.01 Entry into a Material Definitive Agreement.
Issuance of $4,500,000,000 aggregate principal amount of senior notes
Overview
On February 23, 2024, HCA Inc. (the “Issuer”), a direct, wholly owned subsidiary of HCA Healthcare, Inc. (the “Parent Guarantor”), completed the public offering of (i) $1,000,000,000 aggregate principal amount of its 5.450% Senior Notes due 2031 (the “2031 Notes”), (ii) $1,300,000,000 aggregate principal amount of its 5.600% Senior Notes due 2034 (the “2034 Notes”), (iii) $1,500,000,000 aggregate principal amount of its 6.000% Senior Notes due 2054 (the “2054 Notes”) and (iv) $700,000,000 aggregate principal amount of its 6.100% Senior Notes due 2064 (the “2064 Notes” and, together with the 2031 Notes, the 2034 Notes and the 2054 Notes, the “Notes”), each guaranteed on a senior unsecured basis by the Parent Guarantor. The Notes have been registered under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the Issuer’s and the Parent Guarantor’s shelf registration statement on Form S-3, filed on May 1, 2023 (File No. 333-271537) (the “Registration Statement”), as supplemented by the prospectus supplement dated February 20, 2024, previously filed with the Securities and Exchange Commission under the Securities Act.
On February 23, 2024, the Notes were issued pursuant to an indenture dated as of August 1, 2011 (the “Base Indenture”), among the Issuer, the Parent Guarantor, Delaware Trust Company (as successor to Law Debenture Trust Company of New York), as trustee (the “Trustee”), and Deutsche Bank Trust Company Americas, as paying agent, registrar and transfer agent (the “Paying Agent”), as amended and supplemented by, (i) the Supplemental Indenture No. 37, dated as of February 23, 2024, among the Issuer, the Parent Guarantor, the Trustee and the Paying Agent, relating to the 2031 Notes (together with the Base Indenture, the “2031 Notes Indenture”); (ii) the Supplemental Indenture No. 38, dated as of February 23, 2024, among the Issuer, the Parent Guarantor, the Trustee and the Paying Agent, relating to the 2034 Notes (together with the Base Indenture, the “2034 Notes Indenture”), (iii) the Supplemental Indenture No. 39, dated as of February 23, 2024, among the Issuer, the Parent Guarantor, the Trustee and the Paying Agent, relating to the 2054 Notes (together with the Base Indenture, the “2054 Notes Indenture”) and (iv) the Supplemental Indenture No. 40, dated as of February 23, 2024, among the Issuer, the Parent Guarantor, the Trustee and the Paying Agent, relating to the 2064 Notes (together with the Base Indenture, the “2064 Notes Indenture” and, together with the 2031 Notes Indenture, the 2034 Notes Indenture and the 2054 Notes Indenture, the “Indentures”).
The following is a brief description of the terms of the Notes and the Indentures.
Maturity and Interest Payment Dates
The 2031 Notes will mature on April 1, 2031, the 2034 Notes will mature on April 1, 2034, the 2054 Notes will mature on April 1, 2054 and the 2064 Notes will mature on April 1, 2064. Interest on the Notes will be payable semi-annually, on April 1 and October 1 of each year, commencing on October 1, 2024, to holders of record on the preceding March 15 or September 15, as the case may be.
Ranking
The Notes are the Issuer’s senior unsecured obligations and: (i) rank senior in right of payment to any of its existing and future subordinated indebtedness, (ii) rank equally in right of payment with any of its existing and future senior indebtedness, (iii) are effectively subordinated in right of payment to any of its existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness, and (iv) are structurally subordinated in right of payment to all existing and future indebtedness and other liabilities of its subsidiaries.
Guarantees
The Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Parent Guarantor.
Covenants
The Indentures contain covenants limiting the Issuer’s and certain of its subsidiaries’ ability to: (i) create liens on certain assets to secure debt, (ii) engage in certain sale and lease-back transactions and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of its assets. These covenants are subject to a number of important limitations and exceptions.
Optional Redemption
The Indentures permit the Issuer to redeem some or all of the Notes at any time at the redemption prices set forth in the Indentures.
Change of Control
Upon the occurrence of both a qualifying ratings downgrade and certain changes of control, each holder of the Notes has the right to require the Issuer to repurchase some or all of such holder’s Notes at a purchase price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the repurchase date.
Events of Default
The Indentures also provide for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the Notes to become or to be declared due and payable.
The foregoing descriptions of the Notes and the Indentures (including the form of the Notes) are qualified in their entirety by the terms of such agreements, which are incorporated herein by reference and attached hereto as Exhibits 4.1 through 4.9.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information provided in Item 1.01 of this report is incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HCA HEALTHCARE, INC. (Registrant) | ||
By: | /s/ John M. Franck II | |
John M. Franck II | ||
Vice President – Legal and Corporate Secretary |
Date: February 23, 2024