New York, Nov. 9 (LCD) – HCA today completed a $5.7 billion LBO bond offering via joint bookrunners Citigroup, Bank of America, J.P. Morgan, Merrill Lynch, Deutsche Bank, and Wachovia, sources said. The deal saw blowout demand, allowing for pricing at the tight end of guidance for the eight-year notes and inside of guidance by 12.5 bps for the 10-year piece. A third tranche of toggle notes came at talk. The gargantuan transaction did little to weigh on healthy market tone and instead boosted confidence toward a growing pipeline. Gray markets for the paper were busy in the 102.5-103 context, and the paper since has freed for trade and has risen to the 103.5 context in heavy volumes, sources said.

Net proceeds and $16.8 billion of senior secured loans support the $33 billion buyout of HCA by Bain Capital, KKR, Merrill Lynch & Co. and HCA co-founder Thomas Frist, Jr. The purchase price calls for $21.3 billion in cash, or $51 per share, plus the assumption of $11.7 billion in debt. Terms: