Bank of America, JPMorgan, Citigroup and Merrill Lynch will be financing the $16.8 billion credit facility to back the leveraged buyout of HCA. The deal consists of a six-year, $2 billion revolver; a six-year, $2 billion asset-based revolver; a six-year, $2.25 billion "A" term loan; a seven-year, $9.3 billion term loan "B" and a seven-year, $1.25 billion term loan denominated in dollars, euros and other currencies to be mutually agreed on, according to a filing with the Securities and Exchange Commission. Pricing could not be determined by press time.
Dubbed "Project Hercules," "Project Hero," for short, the deal has a price tag of about $33 billion, including the assumption of $11.7 billion in debt. The holding companies for Kohlberg Kravis Roberts & Co., Bain Capital, Merrill Lynch Global Private Equity and the Frist family, are called Hercules Holding II and Hercules Acquisition Corp. KKR, Bain and Merrill Lynch Private Equity will each provide $1.5 billion in cash for the purchase of HCA, according to the filing. Thomas Frist, HCA co-founder, and his family will also contribute $800 million worth of shares to the deal, according to the filing.