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Tenet Announces Pricing of Its Mandatory Convertible Preferred Stock Offering and Repurchase of $300 Million of Its Outstanding Notes


Tenet Healthcare Corporation announced today that it has priced a $300 million offering of 7.0% mandatory convertible preferred stock. The mandatory convertible preferred stock offering consists of 300,000 shares with a liquidation preference of $1,000 per share. The underwriters have a 30-day option to purchase up to an additional 15% of the offered amount of shares of mandatory convertible preferred stock from the Company. Goldman, Sachs & Co. is serving as the sole book-running manager, Barclays Capital Inc. is serving as lead manager, and Moelis & Company LLC and Wells Fargo Securities, LLC are serving as co-managers of the offering.

Unless converted earlier at the option of the holder or the Company, the mandatory convertible preferred stock will convert automatically into a variable number of shares of the Company’s common stock on October 1, 2012. The mandatory convertible preferred stock will pay cumulative dividends at a rate of 7.0% per annum on the liquidation preference of $1,000 per share, payable quarterly in arrears.

The gross proceeds to the Company from the mandatory convertible preferred stock offering are expected to be approximately $300 million. The Company will use the net proceeds from the offering to repurchase $300 million aggregate principal amount of its outstanding 9.250% senior notes due 2015 through a privately negotiated transaction.

The closing date for the offering is expected to be September 25, 2009.

The shares of mandatory convertible preferred stock are being offered under the Company’s existing effective shelf registration statement. A prospectus supplement and accompanying prospectus describing the terms of the offering have been filed with the Securities and Exchange Commission. Copies of the prospectus supplement and the accompanying prospectus may be obtained from Goldman, Sachs & Co., Attention: Prospectus Department, 85 Broad Street, New York, NY 10004, telephone: 212-902-1171 or 866-471-2526, fax: 212-902-9316, email:


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