St. Petersburg Times
Special report
Video report
  • For their own good
    Fifty years ago, they were screwed-up kids sent to the Florida School for Boys to be straightened out. But now they are screwed-up men, scarred by the whippings they endured. Read the story and see a video and portrait gallery.
  • More video reports
Multimedia report
Print Email this storyEmail story Comment Email editor
Fill out this form to email this article to a friend
Your name Your email
Friend's name Friend's email
Your message
 

HCA's new owners will take in $175M in fees

The for-profit hospital chain was sold to a consortium of investment funds on Nov. 17.

By ASSOCIATED PRESS
Published November 28, 2006


ADVERTISEMENT

NASHVILLE - The new owners of HCA Inc., the nation's largest for-profit hospital chain, will collect $175-million in transaction fees as part of a completed $21.3-billion leveraged buyout to take the company private.

The affiliates of HCA's new owners will also get an additional $15-million or more a year in management fees from the company, according to a report filed by HCA last week with the Securities and Exchange Commission.

The hospital chain was sold on Nov. 17 to HCA management and Hercules Holding II LLC, a consortium of private investment funds including Bain Capital Partners LLC, Kohlberg Kravis Roberts & Co. and Merrill Lynch Global Private Equity.

The deal also involves $16-billion in new debt and the assumption of $11.7-billion in existing debt. Former shareholders will receive $51 for each share of common stock.

Nashville-based HCA operates 172 hospitals and 95 freestanding surgery centers and other facilities that provide outpatient services in 21 states, Britain and Switzerland. HCA has nine hospitals in the Tampa Bay area.

[Last modified November 28, 2006, 00:21:31]


Share your thoughts on this story

[an error occurred while processing this directive]
Subscribe to the Times
Click here for daily delivery
of the St. Petersburg Times.

Email Newsletters

ADVERTISEMENT