PE-Backed HCA Sets Terms for $3.7B I.P.O.

Hospital operator HCA, which is owned by investors including buyout shops Bain Capital and Kohlberg Kravis Roberts & Co., has set terms for an initial public offering, Reuters reported. The company plans to raise $3.7 billion, selling 124 million shares priced between $27 and $30, Reuters said. HCA owns and operates more than 160 hospitals in the United States and England, and was taken private in a $21 billion deal in late 2006.

(Reuters) – Private equity-backed hospital operator HCA Inc set terms for an initial public offering on Tuesday that will have the company raise up to $3.7 billion, or 19 percent less than originally planned.

The company and selling shareholders plan to sell 124 million shares for $27 to $30 each, raising up to $3.7 billion. In May, HCA filed to raise up to $4.6 billion.

Since May, HCA has paid more than $4 billion in dividends to its owners.

HCA operates more than 160 hospitals in the United States and England. It was taken private in November 2006 in a $21 billion deal that included Bain, KKR, Bank of America Corp , Citigroup Inc and HCA’s founder.

Underwriters on the IPO are being led by Bank of America Merrill Lynch, Citi and JPMorgan. The shares are expected to trade on the New York Stock Exchange under the symbol “HCA.” (Reporting by Clare Baldwin, editing by Maureen Bavdek)