Triad Hospitals' bank debt traded at 100 7/8 early this week with dealers attributing its resiliency to being a hospital credit. "It's defensive. If the world were to blow up, you'd still need it," a trader said. Triad has stayed in the 101 range since April, when it started to get a boost by resurgence in the health care industry. The Dallas-based company owns and operates 50 acute care hospitals and 14 ambulatory surgery centers primarily in small-sized cities in 17 countries. Calls to Burke Whitman, cfo, were referred to Pat Ball, v.p. of marketing, who declined to comment.
Last spring Moody's Investors Service assigned a Ba3 rating to the company's senior secured credit facility because of the risk associated with its acquisition of Quorum Health Group. The company secured a $1.2 billion deal last spring which was led by J.P. Morgan and Merrill Lynch. The deal breaks down into a $250 million revolver, a $250 million "A" term loan, a $150 million two-year asset sale facility and a $550 million, seven year "B" term loan.