Tenet completed a private placement of $2.25 billion in senior secured first‑lien notes due 2032 at 5.5% and senior notes due 2033 at 6.0%. The placement will refinance $2.0 billion of existing debt.
Proceeds will be used to redeem all outstanding 6.25% senior secured second‑lien notes due 2027 and a portion of the 6.125% senior notes due 2028, reducing the debt burden and extending maturities.
The transaction aligns with Tenet’s strategy to lower leverage and extend debt maturities. As of December 31 2024, the company’s long‑term debt stood at $9.931 billion, with a debt‑to‑equity ratio of 9.12 and a net debt‑to‑EBITDA ratio of 2.3×. The refinancing is expected to lower interest expense and improve financial flexibility.
Tenet continues to invest heavily in its ambulatory surgery center platform, United Surgical Partners International (USPI). The company plans to invest roughly $250 million annually in M&A for the ambulatory space and expects to add 10‑12 new centers in 2025. The ambulatory business has shown strong growth, outperforming hospitals in same‑facility revenue gains.
Management noted sector‑specific headwinds that have pressured operating margins, which fell to 16.8% in Q3 2025 from 21.3% a year earlier. The company’s share repurchase program was increased by $1.5 billion in July 2025, underscoring its commitment to returning capital to shareholders.
The placement is scheduled to close on November 18 2025, with the redemption of the existing notes on November 19 2025.
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