HCA Healthcare Raises $6.5 Billion In Bonds — Largest Slice Pays 6% Through 2036
The hospital operator may use the money to retire 2027 bonds and repay short-term borrowings.
HCA Healthcare, which operates hospitals and outpatient facilities in the United States and England, completed a $6.5 billion bond sale through its wholly owned issuing subsidiary Thursday, according to an SEC filing. The largest slice is $1.5 billion due in 2036, paying 6% annually, and the parent company guarantees the debt.
Cash For Potential Debt Repayments
The sale generated $6,441,002,500 in proceeds before expenses. HCA intends to use the money for general corporate purposes, which may include retiring some or all of its $1.200 billion of bonds due in 2027 and paying down commercial paper — short-term corporate debt — or credit-facility borrowings.
Mizuho Securities USA, Barclays Capital, BofA Securities and Wells Fargo Securities represented the underwriters under the agreement signed Monday.
Repayments Stretch From 2028 To 2056
The new borrowing spans maturities from 2028 through 2056. Beyond the $1.5 billion due in 2036, the bond terms divide the offering as follows:
- $500 million due in 2028 pays a fixed 5.200% annual rate.
- $300 million also comes due in 2028, with a floating interest rate.
- $1 billion due in 2029 pays 5.350% annually.
- $1.25 billion due in 2031 pays 5.500% annually.
- $1.2 billion due in 2033 pays 5.750% annually.
- $750 million due in 2056 pays 6.500% annually.
The bonds are senior unsecured debt: they have no pledged collateral and rank equally for payment with the issuer’s other senior borrowings. HCA Healthcare’s guarantee is full and unconditional.
HCA can redeem the fixed-rate bonds before maturity at the prices specified in their terms, but cannot redeem the floating-rate bonds early. Bondholders can demand repayment at 101% of principal, plus unpaid interest, if both a qualifying credit-rating downgrade and a specified change of control occur.
A 190-Hospital Care Network
HCA reported $75,600 million in revenue for 2025. At December 31, 2025, its network included 190 hospitals: 179 general acute care hospitals, seven behavioral hospitals treating mental health and substance abuse, and four rehabilitation hospitals.
The acute care hospitals had 50,436 licensed beds. HCA also operated 121 freestanding ambulatory surgery centers and 31 freestanding endoscopy centers across 19 states and England.
The broader network includes urgent care centers, walk-in clinics, physician practices, home health agencies and hospices. Payments for patient care come from Medicare, Medicaid, managed care plans, private insurers and patients themselves.
The bond sale is complete; the potential retirement of the 2027 bonds remains a possible use of the proceeds, rather than a completed repayment.
Sources
- 8-K Filing — HCA Healthcare, Inc. (HCA) — SEC EDGAR
- Exhibit hca-ex1_1.htm — HCA Healthcare, Inc. 8-K exhibit — SEC EDGAR
- HCA Announces Proposed Public Offering of Senior Notes — businesswire.com
