HCA Holdings 2011 Annual Report Download - page 135

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HCA HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE 10 — LONG-TERM DEBT
A summary of long-term debt at December 31, including related interest rates at December 31, 2011,
follows (dollars in millions):
2011 2010
Senior secured asset-based revolving credit facility (effective interest rate of
1.8%) ......................................................... $ 2,155 $ 1,875
Senior secured revolving credit facility ................................ —729
Senior secured term loan facilities (effective interest rate of 4.8%) ........... 7,425 7,530
Senior secured first lien notes (effective interest rate of 7.7%) .............. 7,081 4,075
Other senior secured debt (effective interest rate of 6.8%) .................. 350 322
First lien debt ..................................................... 17,011 14,531
Senior secured second lien notes (effective interest rate of 11.0%) ........... 197 4,501
Senior secured toggle notes .......................................... —1,578
Second lien debt .................................................. 197 6,079
Senior unsecured notes (effective interest rate of 7.3%) .................... 9,844 7,615
Total debt (average life of 6.9 years, rates averaging 6.3%) ................. 27,052 28,225
Less amounts due within one year .................................... 1,407 592
$25,645 $27,633
2011 Activity
During May 2011, we completed amendments to our senior secured credit agreement and senior secured asset-
based revolving credit agreement, as well as extensions of certain of our term loans. The amendments extended
$594 million ($572 million outstanding at December 31, 2011) of our term loan A facility with a final maturity of
November 2012 to a final maturity of May 2016 and $2.373 billion of our term loan A and term loan B-1 facilities
with final maturities of November 2012 and November 2013, respectively, to a final maturity of May 2018.
During June 2011, we redeemed all $1.000 billion aggregate principal amount of our 9
1
⁄
8
% senior secured
notes due 2014, at a redemption price of 104.563% of the principal amount, and $108 million aggregate principal
amount of our 9
7
⁄
8
% senior secured notes due 2017, at a redemption price of 109.875% of the principal amount.
The pretax loss on retirement of debt related to these redemptions was $75 million.
During August 2011, we issued $5.000 billion aggregate principal amount of notes, comprised of
$3.000 billion of 6.50% senior secured first lien notes due 2020 and $2.000 billion of 7.50% senior unsecured notes
due 2022. We used the net proceeds from these debt issuances to redeem all of our outstanding $1.578 billion
9
5
⁄
8
%/10
3
⁄
8
% second lien toggle notes due 2016, at a redemption price of 106.783% of the principal amount, and all
of our outstanding $3.200 billion 9
1
⁄
4
% second lien notes due 2016, at a redemption price of 106.513% of the
principal amount. The pretax loss on retirement of debt related to these redemptions was $406 million.
During September 2011, we refinanced our $2.000 billion asset-based revolving credit facility maturing on
November 16, 2012 to increase the total capacity to $2.500 billion and extend the maturity to 2016.
During October 2011, we issued $500 million aggregate principal amount of 8.00% senior unsecured notes
due 2018. We used the net proceed for general corporate purposes, which included funding a portion of the
acquisition of the remaining interest in HealthONE.
F-30