Tenet Healthcare Withdraws Q1, FY20 Outlook Amid COVID-19 - Quick Facts

(RTTNews) - Providing a business and financial update related to the coronavirus (COVID-19) outbreak, healthcare services company Tenet Healthcare Corp. (THC) announced Thursday that it has withdrawn its previously announced financial outlook for the first quarter and full year 2020.

The company added that the rapidly evolving environment and continued uncertainty will likely impact Tenet's financial performance materially.

Tenet is also seeking an amendment to its senior secured revolving credit facility, which will include increasing total borrowing capacity under the facility to $2.0 billion (up from $1.5 billion).

In addition, other sources of potential liquidity for Tenet include funding that may be available to healthcare providers under the CARES Act, proceeds from the previously announced sale of its Memphis hospitals for approximately $350 million, and potential sale and lease-back transactions that Tenet may evaluate.

Concurrently, Tenet has announced a private offering of $500 million in aggregate principal amount of senior secured first lien notes, with proceeds to be used to repay a portion of the $500 million aggregate principal amount of borrowings outstanding under its senior secured revolving credit facility or for general corporate purposes.