Dallas-based Tenet Healthcare Corp. has announced a series of strategic and financial initiatives to accelerate growth and enhance shareholder value. The plan includes:
· Near-term acquisitions, expected to total approximately $400 million, to enhance the company’s primary business lines, including acute care hospitals, outpatient facilities, and business process services.
· A new $500 million authorization to repurchase common stock in open market transactions. The timing and amount of repurchase transactions will be based on an evaluation of market conditions, share price and other factors.
· $800 million of new debt. Proceeds will reduce the outstanding balance on the company’s bank line, contribute to the funding of near-term acquisitions, retire $216 million of 7.375 percent debt that matures in February 2013 and other general corporate purposes.
· A reverse stock split, in which one new THC share will be issued in exchange for every four existing shares. This share exchange will be effective Oct. 11, 2012.