CNBC's David Faber says hospital chain HCA will settle on the underwriters for its upcoming initial public offering in the next few weeks and then bring its shares to market in July. Faber said the offering could reach $4.5 billion, 50 percent more than earlier reports suggested. (Hmm, that brings to mind the company's bond sale spree a year ago.) Separately, HCA also disclosed that it tweaked the terms of one of its credit lines earlier this week, extending the due date of $2 billion of loans from late 2013 to the spring of 2017.
Apr 9, 2010 7:24 AM
Following the news of HCA's suspected IPO, most industry analysts are unwilling to chat about the potentially record-breaking deal — probably because their firms hope to get a piece of the action. That is, except for CRT Capital analyst Sheryl Skolnick — who told NashvillePost.com in late March that she thought the IPO would come shortly after health care reform legislation was signed into law. She wrote in a research note today a $3 billion IPO could reduce HCA's pro-forma debt balance of more than $27 billion by 11 percent. Though she added: "We suspect the final IPO amount could actually be higher." Bloomberg's report pegs the deal at between $2.5 billion and $4 billion. Can't get enough? Unfortunately, the details are few. But here's some of the follow-up coverage: StreetInsider (worth it for the headline), Seeking Alpha (industry analysis) and Portfolio (on the private equity industry).
Apr 8, 2010 11:59 AM
Offering would take aim at hospital giant's debt burden
Apr 7, 2010 5:02 PM
Two stories from The Wall Street Journal — one about the natural slowdown this time of year and another about pushback from British money mangers — detail the precarious state of today's IPO market.
"Only companies that are insulated from the economy or those with established brands, strong fundamentals and balance sheets will succeed," in wooing investors, says Michael A. Bauer, a managing director at Jefferies Group.
Feb 17, 2010 1:21 PM
That’s how Pharos Capital Group managing partner Michael Devlin views an IPO exit from a portfolio company. Devlin yesterday sat with Cumberland Pharmaceuticals CEO A.J. Kazimi, Waller Lansden partner Matt Burnstein and Nashville Capital Network Executive Director Sid Chambless on a panel discussing IPOs, M&A and financing. Though 2010 is looking better than ’09 for deals, the IPO market is still narrow and Devlin said his firm always plans on a private M&A exit when it makes an investment. "An IPO is a lottery kind of win," he said. On the early-stage funding front, Burnstein said the market will remain difficult because financial markets have “not finished gyrating.” Though there is increased activity in this area due to programs like TNInvestco — and panelists lauded Nashville for an active angel investing community — they said there’s reluctance among institutional venture capitalists to invest in deals in the $750,000 to $2 million range.
Feb 11, 2010 8:40 AM
Following HCA's announcement that it will distribute $1.75 billion to its stockholders, Fitch Ratings reaffirmed its stable rating outlook for the hospital operator. Among Fitch's key rating concerns is the large amount of debt maturing in the next several years, "continued shareholder-friendly transactions" and the uncertain industry environment around health care reform. And, of course, there's that whole IPO thing:
Finally, Fitch notes that an exit by HCA's private equity sponsors through, for example, an initial public offering (IPO) could have an impact on its credit profile.
Feb 2, 2010 11:09 AM
Wall Street Journal private-equity blogger Josh Beckerman theorizes that HCA's $1.75 million shareholder dividend is a sign the company may delay its expected IPO. Other moves in the sector suggest the "wait and see" attitude is shared:
[HCA's] move follows on dividend recaps from a ton of other health-care companies, including fellow hospital operators Vanguard Health Systems Inc. and Iasis Healthcare, as well as pharmaceutical services company Quintiles Transanational Corp., making us think this entire sector is hunkering down to wait out the health-care storm. We know where they can get a good snow plow afterwards.See also: Vanguard and Iasis
Feb 1, 2010 10:28 AM
Franklin aluminum producer starts off year with $59M cash crop
Jan 22, 2010 2:21 AM
Modern Healthcare reports on Team Health's IPO yesterday. The company's stock (Ticker: TMH) was trading at about $12.90 per share this morning.
“The mere fact that Team Health opened flat after the price was slashed … and the share size decreased … was a huge disappointment,” said Scott Sweet, senior managing partner for IPO Boutique, in an e-mail. “The last two weeks have been very challenging for any IPO debut.”
Dec 17, 2009 12:04 PM