The market got another clue as to what mega-deal HCA will look like when it hits the market this week. Moody's Investors Service released its ratings last Thursday on the $22.5 billion financing that will back the leveraged buyout of HCA.
The ratings service rated the credit's proposed $2 billion ABL revolver Ba2 and assigned a Ba3 ratings to its $2 billion revolver, $2.75 billion "A" term loan, $8.8 billion term loan "B" and its $1.25 billion euro term loan. In a small tweak since the initial terms were stated in a Securities and Exchange Commission filing (CIN, 8/14), $50 million has been relocated from the term loan "B" into the "A" term loan. The $1.5 billion second-lien payment-in-kind notes and the $4.2 billion of second-lien notes were rated B2, as was the corporate family rating.
Price talk on the $8.8 billion term loan, led by Bank of America, JPMorgan, Citigroup and Merrill Lynch, is currently LIBOR plus 2 1/2%, but Meredith Coffey, senior v.p. and director of analysis at Reuters, commented during the Loan Syndications and Trading Association conference last Wednesday that the market is already anticipating pricing to be bumped to LIBOR plus 2 3/4%.