HCA Holdings 2012 Annual Report Download - page 137

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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, 2012,
follows (dollars in millions):
2012 2011
Senior secured asset-based revolving credit facility (effective interest rate of 1.7%) ....... $ 1,470 $ 2,155
Senior secured revolving credit facility .......................................... ——
Senior secured term loan facilities (effective interest rate of 5.6%) ..................... 5,958 7,425
Senior secured first lien notes (effective interest rate of 7.1%) ........................ 9,688 7,081
Other senior secured debt (effective interest rate of 7.0%) ............................ 423 350
First lien debt ............................................................... 17,539 17,011
Senior secured second lien notes (effective interest rate of 11.0%) ..................... 197 197
Senior unsecured notes (effective interest rate of 7.1%) .............................. 11,194 9,844
Total debt (average life of 7.1 years, rates averaging 6.6%) ........................... 28,930 27,052
Less amounts due within one year .............................................. 1,435 1,407
$27,495 $25,645
2012 Activity
During February 2012, we issued $1.350 billion aggregate principal amount of 5.875% senior secured first
lien notes due 2022. After the payment of related fees and expenses, we used the proceeds for general corporate
purposes.
During October 2012, we replaced our $2.000 billion senior secured revolving credit facility maturing on
November 17, 2015, with a new facility on substantially the same terms other than foregoing a scheduled
increase in interest rates and extending the maturity date to November 17, 2016.
During October 2012, we issued $2.500 billion aggregate principal amount of notes, comprised of $1.250
billion of 4.75% senior secured first lien notes due 2023 and $1.250 billion of 5.875% senior unsecured notes due
2023. After the payment of related fees and expenses, we used the proceeds for general corporate purposes.
During December 2012, we issued $1.000 billion aggregate principal amount of 6.25% senior unsecured
notes due 2021 (the “December 2012 Notes”). After the payment of related fees and expenses, we used the
proceeds to pay a distribution to our stockholders and holders of certain vested stock awards.
2011 Activity
During June 2011, we redeemed all $1.000 billion aggregate principal amount of our 9
1
⁄
8
% senior secured
second lien 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 second lien 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.
F-29