Table of Contents

 

As filed with the Securities and Exchange Commission on November 27, 2012

Registration No. 333-                   

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM S-3

 

REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933

 

TENET HEALTHCARE CORPORATION

(Exact name of Registrant as specified in its charter)

 

Nevada

 

95-2557091

(State of Incorporation)

 

(IRS Employer Identification Number)

 

1445 Ross Avenue, Suite 1400

Dallas, Texas 75202
(469) 893-2200
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 


 

Paul A. Castanon

Vice President & Deputy General Counsel

TENET HEALTHCARE CORPORATION

1445 Ross Avenue, Suite 1400

Dallas, Texas 75202

(469) 893-2200

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 


 

With copies to:

 

Barbara L. Becker
Andrew L. Fabens

Gibson, Dunn & Crutcher LLP

200 Park Avenue

New York, New York 10166

(212) 351-4034

 

Approximate date of commencement of proposed sale to the public:

 

From time to time after this registration statement becomes effective.

 

If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. o

 

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box. x

 

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

 

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

 

If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. x

 

If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box. o

 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended).

 

Large accelerated filer

x

 

Accelerated filer

o

 

 

 

Non-accelerated filer

o

 

Smaller reporting company

o

 

CALCULATION OF REGISTRATION FEE

 

 

 

 

 

 

 

 

 

 

Title of each class of
securities to be registered

 

Amount to be
registered

 

Proposed maximum
offering price per unit

 

Proposed maximum
aggregate offering price

 

Amount of
registration fee

 

Common Stock, par value $0.05 per share

 

(1)

 

(1)

 

(1)

 

(2)

 

Preferred Stock, par value $0.15 per share

 

(1)

 

(1)

 

(1)

 

(2)

 

Debt Securities

 

(1)

 

(1)

 

(1)

 

(2)

 

Warrants

 

(1)

 

(1)

 

(1)

 

(2)

 

Purchase Contracts

 

(1)

 

(1)

 

(1)

 

(2)

 

Units

 

(1)

 

(1)

 

(1)

 

(2)

 

(1)           An unspecified amount or aggregate initial offering price of securities of each class is being registered as may be offered from time to time at unspecified prices. Separate consideration may or may not be received for securities that are issuable upon exercise, conversion or exchange of other securities.

(2)           Deferred in reliance on Rules 456(b) and 457(r) under the Securities Act.

 

 

 



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PROSPECTUS

 

GRAPHIC

 

Tenet Healthcare Corporation

 

COMMON STOCK
PREFERRED STOCK
DEBT SECURITIES
WARRANTS
PURCHASE CONTRACTS
UNITS

 

This prospectus is part of a registration statement that we have filed with the Securities and Exchange Commission using an “automatic shelf” registration process. This means:

 

·                   we may offer and sell common stock, preferred stock, debt securities, warrants, purchase contracts or units in any combination from time to time in one offering or multiple offerings (and the preferred stock, debt securities, warrants, purchase contracts and units may be convertible into or exercisable or exchangeable for common stock, preferred stock or other securities); and

·                   we will provide specific information about the terms of the specific securities that we offer and sell in a supplement that also may add, update or change information contained in this prospectus.

 

You should read this prospectus and any applicable prospectus supplement carefully before you invest.

 

Investing in our securities involves risks. We refer you to “Risk Factors” on page 2 of this prospectus and any similar section contained in the applicable prospectus supplement for a discussion of the factors you should consider before deciding to purchase our securities.

 

The securities offered by this prospectus may be offered directly, through agents designated from time to time by us, or to or through underwriters or dealers. If any agents or underwriters are involved in the sale of any of the securities offered by this prospectus, their names, and any applicable purchase price, fee, commission or discount arrangement between or among us and them, will be set forth, or will be calculable from the information set forth, in the applicable prospectus supplement. None of the securities offered by this prospectus may be sold without delivery of the applicable prospectus supplement describing the method and terms of the offering of those securities.

 

Our common stock trades on the New York Stock Exchange under the symbol “THC.”

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.

 


 

The date of this prospectus is November 27, 2012

 



Table of Contents

 

TABLE OF CONTENTS

 

 

Page

 

 

ABOUT THIS PROSPECTUS

1

THE COMPANY

2

RISK FACTORS

2

FORWARD-LOOKING STATEMENTS

2

SELECTED FINANCIAL DATA

4

CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

7

USE OF PROCEEDS

8

DESCRIPTION OF SECURITIES

9

DESCRIPTION OF CAPITAL STOCK

10

PLAN OF DISTRIBUTION

11

VALIDITY OF THE SECURITIES

12

EXPERTS

12

WHERE YOU CAN FIND MORE INFORMATION

13

 

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ABOUT THIS PROSPECTUS

 

This prospectus is part of an “automatic shelf” registration statement that we filed with the U.S. Securities and Exchange Commission, or the SEC, as a “well-known seasoned issuer” (as defined in Rule 405 under the Securities Act of 1933, as amended, or the Securities Act). By using a shelf registration statement, we may sell any amount and combination of the securities described in this prospectus in any combination from time to time in one offering or multiple offerings. Each time we sell securities, we will supplement this prospectus with specific information about the terms of the offering and the securities being offered. Each supplement may also add, update or change information contained in this prospectus. Before purchasing any securities, you should carefully read both this prospectus and any accompanying prospectus supplement, as well as any free writing prospectus or pricing supplement prepared by us or on our behalf, together with the documents we have incorporated by reference in this prospectus described under the heading “Incorporation by Reference” and the additional information described under the heading “Where You Can Find More Information.”

 

The exhibits to the registration statement contain the full text of certain contracts and other important documents we have summarized in this prospectus. You should review the full text of these documents because these summaries may not contain all the information that you may find important in deciding whether to purchase the securities we offer. The registration statement, including the exhibits, can be read at the SEC’s website or at the SEC’s offices mentioned under the heading “Where You Can Find More Information.”

 

You should rely only on the information contained or incorporated by reference in this prospectus, in the accompanying prospectus supplement or in any free writing prospectus or pricing supplement we file with the SEC, in addition to the information contained in the documents we refer to under the heading “Incorporation by Reference.” We have not authorized any person to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. We are not making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should not assume that the information contained or incorporated by reference in this prospectus, any accompanying prospectus supplement or any free writing prospectus prepared by us or on our behalf is accurate as of any date other than the respective date on its cover page. Our business, financial condition, results of operations, liquidity and prospects may have subsequently changed.

 

References in this prospectus to “Tenet,” “we,” “us” and “our” are to Tenet Healthcare Corporation, a Nevada corporation, and its consolidated subsidiaries unless the context otherwise requires.

 

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THE COMPANY

 

Tenet Healthcare Corporation (together with our subsidiaries, referred to as “Tenet,” the “Company,” “we” or “us”) is an investor-owned health care services company whose subsidiaries and affiliates own and operate acute care hospitals and related health care facilities. At September 30, 2012, our subsidiaries operated 49 hospitals with a total of 13,216 licensed beds, primarily serving urban and suburban communities, as well as 112 free-standing and provider-based outpatient centers. In addition to providing health care services, we also offer revenue cycle management, health care information management and patient communications services, and we own a management services business that provides network development, utilization management, claims processing and contract negotiation services to physician organizations and hospitals that assume managed care risk.

 

We were incorporated in the State of Nevada in 1975. Our executive offices are located at 1445 Ross Avenue, Suite 1400, Dallas, Texas 75202. Our telephone number is (469) 893-2200. We can be found on the worldwide web at www.tenethealth.com. Information on our website is not part of this prospectus.

 

RISK FACTORS

 

Investment in any securities offered pursuant to this prospectus involves risks and uncertainties. You should carefully consider the risk factors incorporated herein by reference to our most recent Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, along with the other information contained in this prospectus, as updated by our subsequent filings under the Securities Exchange Act of 1934, as amended, or the Exchange Act, and the risk factors and other information contained in the applicable prospectus supplement, before acquiring any such securities. For more information, see the section entitled “Where You Can Find More Information.” If one or more of the events discussed in these risks factors were to occur, our business, financial condition, results of operations or liquidity, as well as the value of an investment in our securities, could be materially adversely affected.

 

FORWARD-LOOKING STATEMENTS

 

This prospectus, the applicable prospectus supplement and the documents incorporated by reference herein and therein contain “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements, other than statements of historical or present facts, that address activities, events, outcomes, business strategies and other matters that we plan, expect, intend, assume, believe, budget, predict, forecast, project, estimate or anticipate (and other similar expressions) will, should or may occur in the future are forward-looking statements. These forward-looking statements represent management’s current belief, based on currently available information, as to the outcome and timing of future events. They involve known and unknown risks, uncertainties and other factors—many of which we are unable to predict or control—that may cause our actual results, performance or achievements, or health care industry results, to be materially different from those expressed or implied by forward-looking statements. Such factors include, but are not limited to, the risks described in Item 1A — Risk Factors in our Annual Report on Form 10-K and the following:

 

·                   Our ability to identify and execute on measures designed to save or control costs or streamline operations;

·                   Changes in our business strategies or development plans;

·                   Technological and pharmaceutical improvements that increase the cost of providing, or reduce the demand for, health care services;

·                   Various factors that may increase supply costs;

·                   The soundness of our investments in marketable securities and other instruments;

·                   Adverse fluctuations in interest rates and other risks related to interest rate swaps or any other hedging activities we undertake;

·                   Our ability to integrate new businesses with our existing operations;

·                   National, regional and local economic and business conditions;

·                   Demographic changes; and

·                   Other factors and risk factors referenced in this report and our other public filings.

 

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When considering forward-looking statements, a reader should keep in mind the risk factors and other cautionary statements included or incorporated by reference in this prospectus and the applicable prospectus supplement. These risks and uncertainties are discussed in detail in Item 1 — Business and Item 1A — Risk Factors in our Annual Report on Form 10-K, Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations in Exhibit 99.1 to our Current Report on Form 8-K filed on October 1, 2012 and elsewhere in other reports we file with the SEC, which are incorporated by reference herein. You may obtain copies of these documents as described under “Where You Can Find More Information” below. Should one or more risks and uncertainties occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. We specifically disclaim any obligation to update any information contained in a forward-looking statement or any forward-looking statement in its entirety and, therefore, disclaim any resulting liability for potentially related damages. All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

 

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SELECTED FINANCIAL DATA

 

The following tables present selected historical consolidated financial data for Tenet Healthcare Corporation and its wholly owned and majority-owned subsidiaries.  The consolidated statements of operations and consolidated statements of cash flow data for the years ended December 31, 2011, 2010 and 2009 and the consolidated balance sheet data as of December 31, 2011 and 2010 have been derived from our audited consolidated financial statements, which are included in our Current Report on Form 8-K filed on October 1, 2012, which is incorporated by reference in this prospectus, except for basic earnings (loss) per share attributable to Tenet Healthcare Corporation common shareholders from continuing operations and diluted earnings (loss) per share attributable to Tenet Healthcare Corporation common shareholders from continuing operations, which have been updated as a result of a reverse stock split.

 

The consolidated operating results for the years ended December 31, 2008 and 2007 have been derived from unaudited consolidated financial information not included or incorporated by reference in this prospectus, except for basic earnings (loss) per share attributable to Tenet Healthcare Corporation common shareholders from continuing operations and diluted earnings (loss) per share attributable to Tenet Healthcare Corporation common shareholders from continuing operations which have been updated as a result of a reverse stock split. All periods presented have been reclassified in accordance with the provisions of Accounting Standards Update (“ASU”) 2011-07, “Health Care Entities (Topic 954): Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts for Certain Health Care Entities.” The consolidated cash flow data for the years ended December 31, 2008 and 2007 and the consolidated balance sheet data as of December 31, 2009, 2008 and 2007 have been derived from unaudited consolidated financial statements not included or incorporated by reference in this prospectus.

 

The consolidated operating results and consolidated cash flow data for the nine months ended September 30, 2012 and 2011, and the consolidated balance sheet data as of September 30, 2012, have been derived from our unaudited condensed consolidated financial statements included in our Form 10-Q for the fiscal quarter ended September 30, 2012, which is incorporated by reference in this prospectus.  The consolidated balance sheet data as of September 30, 2011 has been derived from our unaudited condensed consolidated financial statements included in our Form 10-Q for the fiscal quarter ended September 30, 2011, which is not included or incorporated by reference herein. The unaudited consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting.  We believe all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the results of the interim periods have been included.

 

The following information should be read in conjunction with the information under the caption “Risk Factors” contained herein and incorporated by reference herein from our Annual Report.  The following information should also be used in conjunction with the information under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements, both included in our Current Report on Form 8-K filed on October 1, 2012, and both included in our Form 10-Q for the fiscal quarter ended September 30, 2012, each of which has been incorporated by reference in this prospectus.

 

The operating results data presented below are not necessarily indicative of our future results of operations. Reasons for this include, but are not limited to: overall revenue and cost trends, particularly the timing and magnitude of price changes; fluctuations in contractual allowances and cost report and commercial contract settlements and valuation allowances; managed care contract negotiations, settlements or terminations and payer consolidations; changes in Medicare and Medicaid regulations; Medicaid funding levels set by the states in which we operate; the timing of approval by the Centers for Medicare & Medicaid Services of Medicaid provider fee revenue programs; trends in patient accounts receivable collectability and associated provisions for doubtful accounts; fluctuations in interest rates; levels of malpractice insurance expense and settlement trends; the timing of when we meet the criteria to recognize electronic health record incentives; impairment of long-lived assets and goodwill; restructuring charges; losses, costs and insurance recoveries related to natural disasters; litigation and investigation costs; acquisitions and dispositions of facilities and other assets; income tax rates and deferred tax asset valuation allowance activity; changes in estimates of accruals for annual incentive compensation; the timing and amounts of stock option and restricted stock unit grants to employees and directors; gains or losses from early

 

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extinguishment of debt; and changes in occupancy levels and patient volumes. Factors that affect patient volumes and, thereby, our results of operations at our hospitals and related health care facilities include, but are not limited to: the business environment, economic conditions and demographics of local communities; the number of uninsured and underinsured individuals in local communities treated at our hospitals; seasonal cycles of illness; climate and weather conditions; physician recruitment, retention and attrition; advances in technology and treatments that reduce length of stay; local health care competitors; managed care contract negotiations or terminations; any unfavorable publicity about us, which impacts our relationships with physicians and patients; changes in health care regulation; and the timing of elective procedures. These considerations apply to year-to-year comparisons as well.

 

OPERATING RESULTS

 

 

 

Years Ended December 31,

 

Nine Months Ended
September 30,

 

 

 

2011

 

2010

 

2009

 

2008

 

2007

 

2012

 

2011

 

 

 

(In Millions, Except Per-Share Amounts)

 

Net operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenues before provision for doubtful accounts

 

$

9,371

 

$

8,992

 

$

8,785

 

$

8,368

 

$

7,874

 

$

7,373

 

$

7,018

 

Less provision for doubtful accounts

 

717

 

727

 

684

 

618

 

547

 

585

 

536

 

Net operating revenues

 

8,654

 

8,265

 

8,101

 

7,750

 

7,327

 

6,788

 

6,482

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

4,015

 

3,830

 

3,781

 

3,707

 

3,546

 

3,166

 

3,001

 

Supplies

 

1,548

 

1,542

 

1,534

 

1,477

 

1,364

 

1,164

 

1,167

 

Other operating expenses, net

 

2,020

 

1,857

 

1,831

 

1,852

 

1,781

 

1,604

 

1,526

 

Electronic health record incentives

 

(55

)

 

 

 

 

(13

)

(50

)

Depreciation and amortization

 

398

 

380

 

373

 

357

 

324

 

314

 

298

 

Impairment of long-lived assets and goodwill, and restructuring charges, net

 

20

 

10

 

27

 

16

 

36

 

12

 

18

 

Hurricane insurance recoveries, net of costs

 

 

 

 

 

(3

)

 

 

Litigation and investigation costs, net of insurance recoveries

 

55

 

12

 

31

 

41

 

12

 

3

 

24

 

Operating income

 

653

 

634

 

524

 

300

 

267

 

538

 

498

 

Interest expense

 

(375

)

(424

)

(445

)

(418

)

(419

)

(303

)

(275

)

Gain (loss) from early extinguishment of debt

 

(117

)

(57

)

97

 

 

 

 

 

Investment earnings

 

3

 

5

 

 

22

 

47

 

2

 

3

 

Net gain on sales of investments

 

 

 

15

 

139

 

 

 

 

Income (loss) from continuing operations, before income taxes

 

164

 

158

 

191

 

43

 

(105

)

237

 

226

 

Income tax benefit (expense)

 

(61

)

977

 

23

 

25

 

59

 

(90

)

(73

)

Income (loss) from continuing operations, before discontinued operations

 

$

103

 

$

1,135

 

$

214

 

$

68

 

$

(46

)

$

147

 

$

153

 

Basic earnings (loss) per share attributable to Tenet Healthcare Corporation common shareholders from continuing operations

 

$

0.58

*

$

9.09

*

$

1.67

*

$

0.54

*

$

(0.41

)*

$

1.25

*

$

1.06

*

Diluted earnings (loss) per share attributable to Tenet Healthcare Corporation common shareholders from continuing operations

 

$

0.56

*

$

8.03

*

$

1.63

*

$

0.54

*

$

(0.41

)*

$

1.21

*

$

1.03

*

 


* On September 27, 2012, our Board of Directors approved a decrease to the number of authorized shares of our Common Stock by a ratio equal to one-for-four (1:4) (the “Reverse Split Ratio”) and a proportionate decrease, by a ratio equal to the Reverse Split Ratio, to the number of issued and outstanding shares of our Common Stock, each simultaneously effective at 5:00 p.m., Eastern Time, on October 10, 2012. The diluted and basic earnings per share data presented herein have been adjusted to reflect this, as if such change occurred at the beginning of the respective period.  On October 1, 2012, 46,300 shares of our 7% mandatory convertible preferred stock automatically converted to 1,978,633 shares of our Common Stock; such conversion did not have a material effect on our financial condition and as a result pro-forma adjustments for such conversion have not been presented herein.

 

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BALANCE SHEET DATA

 

 

 

As of December 31,

 

As of September 30,

 

 

 

2011

 

2010

 

2009

 

2008

 

2007

 

2012

 

2011

 

 

 

(In Millions)

 

Working capital (current assets minus current liabilities)

 

$

542

 

$

586

 

$

689

 

$

760

 

$

512

 

$

655

 

$

497

 

Total assets

 

8,462

 

8,500

 

7,953

 

8,174

 

8,393

 

8,470

 

8,293

 

Long-term debt, net of current portion*

 

4,294

 

3,997

 

4,272

 

4,778

 

4,771

 

4,508

 

3,966

 

Total equity

 

1,492

 

1,819

 

697

 

147

 

88

 

1,269

 

1,761

 

 


* On October 16, 2012, we completed a private offering of $500,000,000 in aggregate principal amount of 4.75% senior secured notes due 2020 and $300,000,000 in aggregate principal amount of 6.75% senior unsecured notes due 2020.  On November 1, 2012, we completed a tender offer to purchase for cash any and all of our outstanding 7.375% senior notes due 2013 and $55,305,000 of such notes remains outstanding.

 

CASH FLOW DATA

 

 

 

Years Ended December 31,

 

Nine Months Ended
September 30,

 

 

 

2011

 

2010

 

2009

 

2008

 

2007

 

2012

 

2011

 

 

 

(In Millions)

 

Net cash provided by operating activities

 

$

497

 

$

472

 

$

425

 

$

208

 

$

326

 

$

337

 

$

324

 

Net cash used in investing activities

 

(503

)

(420

)

(125

)

(274

)

(520

)

(346

)

(324

)

Net cash provided by (used in) financing activities

 

(286

)

(337

)

(117

)

1

 

(18

)

(21

)

(220

)

 

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CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

 

The following table contains our consolidated ratio of earnings to fixed charges and our consolidated ratio of earnings to combined fixed charges and preferred dividends for the periods indicated. In the calculation of these ratios, earnings consist of income before income taxes and noncontrolling interest plus fixed charges. Fixed charges consist of interest expense, including amortization of debt discounts and issuance costs, capitalized interest and the imputed interest component of rental expense. Preferred dividends consist of pre-tax earnings that are required to pay dividends on outstanding preferred securities.

 

This information should be read in conjunction with the consolidated financial statements and the accompanying notes incorporated by reference in this prospectus. See “Where You Can Find More Information” and “Incorporation By Reference.”

 

 

 

Years Ended December 31,

 

Nine Months Ended
September 30,

 

 

 

2011

 

2010

 

2009

 

2008

 

2007

 

2012

 

2011

 

 

 

(Dollars in Millions)

 

Consolidated ratio of earnings to fixed charges

 

1.4x

 

1.3x

 

1.4x

 

1.1x

 

 

1.7x

 

1.7x

 

Consolidated ratio of earnings to combined fixed charges and preferred dividends

 

1.3x

 

1.2x

 

1.3x

 

1.1x

 

 

1.6x

 

1.6x

 

Deficiency

 

 

 

 

 

 

 

 

 

$

125

 

 

 

 

 

 

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USE OF PROCEEDS

 

Unless otherwise stated in an applicable prospectus supplement, we will use the proceeds of any offering for general corporate purposes, which may include repayment of debt, repurchases of outstanding shares of common stock, acquisitions, investments, additions to working capital, investments in our subsidiaries and capital expenditures. We may invest funds not required immediately for such purposes in cash and cash equivalents or short-term investments.

 

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DESCRIPTION OF SECURITIES

 

We may issue from time to time, in one or more offerings and in any combination, the following securities:

 

·                   common stock;

·                   preferred stock;

·                   debt securities;

·                   warrants;

·                   purchase contracts to purchase common stock or preferred stock; and

·                   units.

 

A general description of our common stock and our preferred stock is provided below. A description of the specific terms of any preferred stock, debt securities, warrants, purchase contracts and units that may be offered under this prospectus will be set forth in the applicable prospectus supplement relating to those securities. The terms of the offering of the securities, the initial offering price and the net proceeds to us will also be contained in any applicable prospectus supplement or other offering materials relating to such offer. Such materials may also add, update or change information contained in this prospectus.

 

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DESCRIPTION OF CAPITAL STOCK

 

The following description of our capital stock is only a summary. This summary does not purport to be complete and is subject to and qualified in its entirety by reference to our Amended and Restated Articles of Incorporation and Amended and Restated Bylaws, each of which is an exhibit to the registration statement of which this prospectus is a part.

 

Common Stock

 

We are authorized to issue up to 262,500,000 shares of common stock, $0.05 par value, under our Amended and Restated Articles of Incorporation, as modified by the Certificate of Change pursuant to Nevada Revised Statutes 78.209, effective as of October 10, 2012. As of October 31, 2012, there were 106,475,474 shares of common stock outstanding.

 

Article II of our Amended and Restated Bylaws provides that holders of common stock are entitled to one vote per share on all matters on which the holders of common stock are entitled to vote. Holders of common stock are not entitled to cumulative voting rights. Article VIII of our Amended and Restated Articles of Incorporation provides that the affirmative vote of a majority of the holders of all outstanding shares, voting together and not by class, shall be required to approve any merger or consolidation or the sale of substantially all of our assets.

 

Outstanding shares of common stock are not subject to redemption and are nonassessable. From time to time, the Board of Directors may declare, and Tenet may pay, dividends on its outstanding shares in the manner and on the terms and conditions provided by the laws of the State of Nevada and the Articles of Incorporation (as the same has been or may be amended from time to time), subject to any contractual restriction to which Tenet is then subject. In the event of a liquidation, dissolution or winding-up of our company, holders of common stock are entitled to share equally and ratably in the assets of our company, if any, remaining after the payment of all debts and liabilities of our company and the liquidation preference of any outstanding preferred stock. The holders of common stock do not have any conversion or subscription rights, and their preemptive rights are limited as provided under Nevada law. The rights, preferences and privileges of holders of common stock are subject to any series of preferred stock that we may issue in the future.

 

Our common stock trades on the New York Stock Exchange under the symbol “THC.” Our transfer agent and registrar is Computershare.

 

Preferred Stock

 

We are authorized to issue up to 2,500,000 shares of preferred stock, $0.15 par value, under our Amended and Restated Articles of Incorporation.  As of October 1, 2012, there were no shares of preferred stock outstanding.

 

Preferred stock may be issued and reissued from time to time in one or more series. The Board of Directors is authorized to fix or alter the dividend rights, dividend rate, conversion rights, voting rights and terms of redemption (including, without limitation, sinking fund provisions and the redemption price or prices), the liquidation preferences and any other rights, preferences, privileges, attributes or other matters with respect to any wholly unissued series of preferred stock, including the authority (a) to determine the number of shares constituting any such series and the designation thereof, and (b) to increase the number of shares of any series at any time. In the event outstanding shares of any series of preferred stock are reacquired or are not issued, such shares may be designated or redesignated and altered, and issued or reissued by the Board of Directors. The Board of Directors also has such other authority with respect to shares of preferred stock that may be reserved to the Board of Directors by law.

 

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PLAN OF DISTRIBUTION

 

We may sell the securities from time to time:

 

·                   to or through one or more underwriters or dealers;

 

·                   through agents;

 

·                   directly to one or more purchasers;

 

·                   through a combination of any of these methods of sale; or

 

·                   through any other methods described in a prospectus supplement.

 

We will identify the specific plan of distribution, including any underwriters, dealers, agents or direct purchasers and any compensation they will receive from us, in the applicable prospectus supplement.

 

The distribution of securities may be effected, from time to time, in one or more transactions, including block transactions and transactions on the New York Stock Exchange or any other organized market where the securities may be traded. The securities may be sold at a fixed price or prices, which may be changed, or at market prices prevailing at the time of sale, at prices relating to the prevailing market prices or at negotiated prices. The consideration may be cash or another form negotiated by the parties.

 

We may engage in at the market offerings into an existing trading market in accordance with Rule 415(a)(4) under the Securities Act. In addition, we may enter into derivative transactions or forward sale agreements on the securities with third parties. In such event, we may pledge the securities underlying such transactions to the counterparties under such agreements to secure our or their delivery obligations. The counterparties or third parties may also borrow securities from us or third parties and sell such securities in a public offering. This prospectus may be delivered in conjunction with such sales. Upon settlement of such transactions, we may deliver the securities to the counterparties that, in turn, the counterparties may deliver to us or third parties to close out the open borrowings of the securities. The counterparty in such transactions will be an underwriter and will be identified in the applicable prospectus supplement.

 

Agents, underwriters or dealers may be paid compensation for offering and selling the securities. That compensation may be in the form of discounts, concessions or commissions to be received from us or from the purchasers of the securities. We will identify the specific plan of distribution, including any underwriters, dealers, agents or direct purchasers and their compensation in a prospectus supplement. We may have agreements with any underwriters, dealers, agents and remarketing firms to indemnify them against certain civil liabilities, including liabilities under the Securities Act, or to contribute with respect to payments they may be required to make. The applicable prospectus supplement will set forth whether or not an underwriter may engage in stabilizing transactions, over-allotment transactions, syndicate covering transactions and penalty bids.

 

In compliance with the guidelines of the Financial Industry Regulatory Authority, or FINRA, the aggregate maximum discount, commission or agency fees or other items constituting underwriting compensation to be received by any FINRA member or independent broker-dealer will not exceed 8% of the proceeds from any offering pursuant to this prospectus and any applicable prospectus supplement.

 

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VALIDITY OF THE SECURITIES

 

The validity of any securities issued under this prospectus will be passed upon for us by Gibson, Dunn & Crutcher LLP, New York, New York, and, with respect to matters of Nevada law, by Woodburn and Wedge, Reno, Nevada.

 

Any underwriters will be represented by their own legal counsel.

 

EXPERTS

 

The consolidated financial statements as of December 31, 2011 and 2010 and for each of the three years in the period ended December 31, 2011, and the related financial statement schedule, incorporated in this Prospectus by reference from the Company’s Current Report on Form 8-K dated October 1, 2012, and the effectiveness of Tenet Healthcare Corporation’s internal control over financial reporting have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their reports, which are incorporated herein by reference (which reports (1) express an unqualified opinion on the consolidated financial statements and financial statement schedule and include explanatory paragraphs referring to the adoption of the requirements of accounting guidance related to the presentation of the provision for doubtful accounts in the consolidated statements of operations, effective December 31, 2011 and the retrospective adjustment as a result of a change in the Company’s reportable business segments and (2) express an unqualified opinion on the effectiveness of internal control over financial reporting). Such financial statements and financial statement schedule have been so incorporated in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.

 

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WHERE YOU CAN FIND MORE INFORMATION

 

You can learn more about the financial and operational results of Tenet by reading the annual, quarterly and current reports and other information we file with the SEC.  You may read and copy any document Tenet files at the SEC’s public reference room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549.  Please call the SEC at 1-800-SEC-0330 for further information on the public reference room.  Tenet’s SEC filings are also available to you at the SEC’s web site at http://www.sec.gov.

 

We “incorporate by reference” certain information in this prospectus, which means that we disclose important information to you by referring you to other documents filed separately with the SEC, which are considered part of this prospectus.  Information that we file later with the SEC will automatically update and supersede the previously filed information.  We incorporate by reference the documents listed below and any future filings made with the SEC under Section 13(a), 13(c), 14 or l5(d) of the Exchange Act until the offering has been completed, other than any information contained in such filings that has been furnished, but not filed, with the SEC, including pursuant to Item 2.02 or Item 7.01 of Form 8-K and corresponding information furnished under Item 9.01 of Form 8-K or included as an exhibit:

 

·                   Annual Report on Form 10-K for the year ended December 31, 2011 (excluding Items 6, 7 and 8 of Part II thereof);

 

·                   Quarterly Reports on Form 10-Q for the quarters ended March 31 (excluding Items 1 and 2 of Part I thereof), June 30, and September 30, 2012; and

 

·                   Current Reports on Form 8-K filed with the SEC on March 14, 2012 (Item 5.02 only), March 30, 2012, April 26, 2012 (Item 8.01 only), May 4, 2012, and May 11, 2012, September 11, 2012, October 1, 2012, (relating to the recast of our Annual Report on Form 10-K for the year ended December 31, 2011), October 1, 2012 (relating to the recast of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2012), October 2, 2012 (Item 8.01 only), October 11, 2012 and October 16, 2012.

 

Any statement contained herein or in any document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained herein or in any other subsequently filed document that also is or is deemed to be incorporated by reference herein modifies or replaces such statement.  Any such statement so modified or superseded shall not be deemed to constitute a part of this prospectus, except as so modified or superseded.

 

You may request copies of the above-referenced filings at no cost, by writing or telephoning Tenet’s principal executive offices at the following address:

 

Tenet Healthcare Corporation
1445 Ross Avenue, Suite 1400
Dallas, Texas 75202
(469) 893-2200

Attn: Corporate Secretary

 

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PART II

 

INFORMATION NOT REQUIRED IN PROSPECTUS

 

Item 14.  Other Expenses of Issuance and Distribution

 

The following table sets forth the costs and expenses payable by the Registrant in connection with the sale of the securities being registered hereby:

 

SEC registration fee

 

$

 

(1)

Fees and expenses of the trustee

 

 

(2)

Printing expenses

 

 

(2)

Legal fees and expenses

 

 

(2)

Accounting fees and expenses

 

 

(2)

Rating agency fees

 

 

(2)

Miscellaneous

 

 

(2)

TOTAL

 

$

 

(2)

 


(1)               Deferred in reliance on Rule 456(b) and Rule 457(r).

(2)               Cannot be estimated at this time.

 

Item 15.  Indemnification of Directors and Officers

 

Under Section 78.7502(1) of the Nevada Revised Statutes, a Nevada corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (except an action by or in the right of the corporation) by reason of the fact that such person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with such action, suit or proceeding if such person: (i) is not liable for a breach of fiduciary duties that involved intentional misconduct, fraud or a knowing violation of law; or (ii) acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful.

 

Section 78.7502(2) of the Nevada Revised Statutes further provides that a Nevada corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that such person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including amounts paid in settlement and attorneys’ fees) actually and reasonably incurred in connection with the defense or settlement of the action or suit if such person: (i) is not liable for a breach of fiduciary duties that involved intentional misconduct, fraud or a knowing violation of law; or (ii) acted in good faith and in a manner that he or she reasonably believed to be in or not opposed to the best interests of the corporation. Indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

 

To the extent that a director, officer, employee or agent of a Nevada corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in subsections (1) and (2) of Section 78.7502, as described above, or in defense of any claim, issue or matter therein, the corporation shall indemnify him

 

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or her against expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection with the defense.

 

 

The Registrant’s Amended and Restated Articles of Incorporation provide that no director or officer of the Registrant shall be personally liable to the Registrant or its shareholders for damages for breach of fiduciary duty as a director or officer, except for liability (i) for acts or omissions that involve intentional misconduct, fraud or a knowing violation of law, or (ii) for the payment of dividends in violation of the Section 300 of Chapter 78 of the Nevada Revised Statutes. The Amended and Restated Articles of Incorporation further provide that the liability of directors and officers of the Registrant shall be eliminated or limited to the fullest extent authorized by Nevada law, as amended.

 

The Registrant’s Amended and Restated Bylaws, as well as individual indemnification agreements the Registrant has entered into with directors of the corporation:

 

·                   provide for mandatory indemnification, to the fullest extent permitted by law, of any present or former director or officer of the Registrant or any of its affiliates or subsidiaries who has served as such a director or officer on or after November 5, 2008 (each, an indemnitee) for all expenses, liabilities, losses or other specified amounts resulting from a legal proceeding arising from any occurrence that takes place after November 5, 2008 and that relates to the fact that such indemnitee is or was a director or officer of the Registrant or any of its affiliates or subsidiaries or at the request of the Registrant served in one of several specified capacities with respect to another entity;

 

·                   provide that the Registrant is not required to indemnify an indemnitee in connection with any legal proceeding initiated by the indemnitee except under certain specified circumstances;

 

·                   require the advancement of expenses to an indemnitee upon receipt of an undertaking by the indemnitee to repay if it is ultimately determined that the indemnitee is not entitled to be indemnified by the Registrant;

 

·                   provide that (1) when making a determination of whether an indemnitee is entitled to indemnification under the Amended and Restated Bylaws, there is a presumption that the indemnitee is entitled to indemnification and the Registrant has the burden of proof to overcome that presumption, and (2) that, in an indemnitee’s lawsuit to enforce his or her right to indemnification under the Amended and Restated Bylaws, the Registrant must prove with clear and convincing evidence that the indemnitee is not entitled to indemnification;

 

·                   require the Registrant to indemnify an indemnitee for expenses (and, if requested by an indemnitee, to advance such expenses on such terms and conditions as the Board deems appropriate) that are incurred by an indemnitee in a lawsuit to enforce the indemnitee’s indemnification rights under the Amended and Restated Bylaws;

 

·                   provide that rights to indemnification under the Amended and Restated Bylaws are non-exclusive, have certain survival rights and are deemed to be contractual rights; and

 

·                   provide that the Registrant has the power to purchase insurance or make other financial arrangements on behalf of an indemnitee for any liability and any related expenses, except that no such financial arrangement may provide protection for a person adjudged by a court of competent jurisdiction to be liable for intentional misconduct, fraud or a knowing violation of law, except with respect to advancement of expenses or indemnification ordered by a court.

 

In addition, the Registrant has purchased insurance coverage to insure its directors and officers against certain liabilities that they may incur in their capacity as such.

 

 See “Item 17. Undertakings” for a description of the SEC’s position regarding indemnification for Securities Act liabilities.

 

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Item 16.  Exhibits

 

A list of exhibits filed with this registration statement is set forth on the Exhibit Index following the signature pages and is incorporated herein by reference.

 

Item 17.   Undertakings

 

(a)          The undersigned Registrant hereby undertakes:

 

(1)          To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

 

(i)          To include any prospectus required by Section 10(a)(3) of the Securities Act;

(ii)         To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and

(iii)        To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in this registration statement;

 

provided, however , that subparagraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the SEC by the Registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in this registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.

 

(2)          That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

(3)          To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

 

(4)          That, for the purpose of determining liability under the Securities Act to any purchaser:

 

(i)          each prospectus filed by the Registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and

(ii)         each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5) or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii) or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.

 

(5)          That, for the purpose of determining liability of the Registrant under the Securities Act to any purchaser in the initial distribution of the securities:

 

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The undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

 

(i)          Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424;

(ii)         Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred to by the undersigned Registrant;

(iii)        The portion of any other free writing prospectus relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and

(iv)        Any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser.

 

(b)          The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the Registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

(c)           Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Act, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Dallas, State of Texas, on November 27, 2012.

 

 

TENET HEALTHCARE CORPORATION

 

 

 

By:

/s/ Daniel J. Cancelmi

 

Daniel J. Cancelmi

 

Chief Financial Officer

 

(Principal Financial Officer)

 

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints each of Trevor Fetter, Daniel J. Cancelmi and Tyler C. Murphy, acting alone, his/her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him/her and in his/her name, place and stead, in any and all capacities, to sign and file any and all amendments (including post-effective amendments) to this registration statement, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises as fully to all intents and purposes as he/she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitutes or substitute, may lawfully do or cause to be done by virtue hereof.

 

Pursuant to the requirements of the Securities Act, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

 

Date: November 27, 2012

By:

/s/ Trevor Fetter

 

 

Trevor Fetter

 

 

President, Chief Executive Officer and Director

 

 

(Principal Executive Officer)

 

 

 

 

 

 

Date: November 27, 2012

By:

/s/ R. Scott Ramsey

 

 

R. Scott Ramsey

 

 

Vice President and Controller

 

 

(Principal Accounting Officer)

 

 

 

 

 

 

Date: November 27, 2012

By:

/s/ John Ellis Bush

 

 

John Ellis Bush

 

 

Director

 

 

 

 

 

 

Date: November 27, 2012

By:

/s/ Brenda J. Gaines

 

 

Brenda J. Gaines

 

 

Director

 

 

 

 

 

 

Date: November 27, 2012

By:

/s/ Karen M. Garrison

 

 

Karen M. Garrison

 

 

Director

 



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Date: November 27, 2012

By:

/s/ Edward A. Kangas

 

 

Edward A. Kangas

 

 

Director

 

 

 

 

 

 

Date: November 27, 2012

By:

/s/ Floyd D. Loop, M.D.

 

 

Floyd D. Loop, M.D.

 

 

Director

 

 

 

 

 

 

Date: November 27, 2012

By:

/s/ Richard R. Pettingill

 

 

Richard R. Pettingill

 

 

Director

 

 

 

 

 

 

Date: November 27, 2012

By:

/s/ Ronald A. Rittenmeyer

 

 

Ronald A. Rittenmeyer

 

 

Director

 

 

 

 

 

 

Date: November 27, 2012

By:

/s/ James A. Unruh

 

 

James A. Unruh

 

 

Director

 



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EXHIBIT INDEX

 

Exhibit
Number

 

Description

 

 

 

1.1*

 

Underwriting Agreement

3.1

 

Amended and Restated Articles of Incorporation of the Registrant, as amended and restated May 8, 2008 (Incorporated by reference to Exhibit 3(a) to Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2008, filed August 5, 2008)

3.2

 

Certificate of Designation for 7.00% Mandatory Convertible Preferred Stock, par value $0.15 per share, dated September 24, 2009 (Incorporated by reference to Exhibit 4.1 to Registrant’s Current Report on Form 8-K, dated September 22, 2009 and filed September 25, 2009)

3.3

 

Certificate of Designation, Preferences, and Rights of Series A Junior Participating Preferred Stock, par value $0.15 per share, dated January 7, 2011 (Incorporated by reference to Exhibit 3.1 to Registrant’s Current Report on Form 8-K, dated and filed January 7, 2011)

3.4

 

Certificate of Change Pursuant to NRS 78.209, filed with the Nevada Secretary of State, dated October 10, 2012 (Incorporated by reference to Exhibit 3.1 to Registrant’s Current Report on Form 8-K, dated October 10, 2012 and filed October 11, 2012)

3.5

 

Amended and Restated Bylaws of the Registrant, as amended and restated effective January 7, 2011 (Incorporated by reference to Exhibit 3.2 to Registrant’s Current Report on Form 8-K, dated and filed January 7, 2011)

4.1

 

Indenture, dated as of November 6, 2001, between the Registrant and The Bank of New York Mellon Trust Company, N.A., as successor trustee to The Bank of New York (Incorporated by reference to Exhibit 4.1 to Registrant’s Current Report on Form 8-K, dated November 6, 2001 and filed November 9, 2001)

4.2

 

Third Supplemental Indenture, dated as of November 6, 2001, between the Registrant and The Bank of New York, as trustee, relating to 67/8% Senior Notes due 2031 (Incorporated by reference to Exhibit 4.4 to Registrant’s Current Report on Form 8-K, dated November 6, 2001 and filed November 9, 2001)

4.3

 

Fourth Supplemental Indenture, dated as of March 7, 2002, between the Registrant and The Bank of New York, as trustee, relating to 6 1/2% Senior Notes due 2012 (Incorporated by reference to Exhibit 4.3 to Registrant’s Current Report on Form 8-K, dated and filed March 7, 2002)

4.4

 

Sixth Supplemental Indenture, dated as of January 28, 2003, between the Registrant and The Bank of New York, as trustee, relating to 7 3/8% Senior Notes due 2013 (Incorporated by reference to Exhibit 4.3 to Registrant’s Current Report on Form 8-K, dated January 28, 2003 and filed January 31, 2003)

4.5

 

Seventh Supplemental Indenture, dated as of June 18, 2004, between the Registrant and The Bank of New York, as trustee, relating to 9 7/8% Senior Notes due 2014 (Incorporated by reference to Exhibit 4(a) to Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2004, filed August 3, 2004)

4.6

 

Eighth Supplemental Indenture, dated as of January 28, 2005, between the Registrant and The Bank of New York, as trustee, relating to 9 1/4% Senior Notes due 2015 (Incorporated by reference to Exhibit 4(g) to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2004, filed March 8, 2005)

4.7

 

Tenth Supplemental Indenture, dated as of March 3, 2009, by and among the Registrant, The Bank of New York Mellon Trust Company, N.A., as successor trustee to The Bank of New York, and the guarantors party thereto, relating to 10% Senior Secured Notes due 2018 (Incorporated by reference to Exhibit 4.2 to Registrant’s Current Report on Form 8-K, dated March 3, 2009 and filed March 5, 2009)

4.8

 

Eleventh Supplemental Indenture, dated as of June 15, 2009, by and among the Registrant, The Bank of New York Mellon Trust Company, N.A., as successor trustee to The Bank of New York, and the guarantors party thereto, relating to 87/8% Senior Secured Notes due 2019 (Incorporated by reference to Exhibit 4.1 to Registrant’s Current Report on Form 8-K, dated June 15, 2009 and filed June 16, 2009)

4.9

 

Twelfth Supplemental Indenture, dated as of August 17, 2010, between the Registrant and The Bank of New York Mellon Trust Company, N.A., as successor trustee to The Bank of New York, relating to 8% Senior Notes due 2020 (Incorporated by reference to Exhibit 4.1 to Registrant’s Current Report on Form 8-K, dated and filed August 17, 2010)

4.10

 

Thirteenth Supplemental Indenture, dated as of November 21, 2011, to Ninth Supplemental Indenture, dated as of March 3, 2009, by and among the Registrant, The Bank of New York Mellon Trust Company, N.A., as successor trustee to The Bank of New York, and the guarantors party thereto, relating to 9%

 



Table of Contents

 

 

 

Senior Secured Notes due 2015 (Incorporated by reference to Exhibit 4.1 to Registrant’s Current Report on Form 8-K, dated November 21, 2011 and filed November 22, 2011)

4.11

 

Fourteenth Supplemental Indenture, dated as of November 21, 2011, by and among the Registrant, The Bank of New York Mellon Trust Company, N.A., as successor trustee to The Bank of New York, and the guarantors party thereto, relating to 6 1/4% Senior Secured Notes due 2018 (Incorporated by reference to Exhibit 4.2 to Registrant’s Current Report on Form 8-K, dated November 21, 2011 and filed November 22, 2011)

4.12

 

Fifteenth Supplemental Indenture dated as of October 16, 2012 among the Registrant, certain of its subsidiaries and The Bank of New York Mellon Trust Company, N.A., as successor trustee to The Bank of New York. (Incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K dated and filed October 16, 2012)

4.13

 

Sixteenth Supplemental Indenture dated as of October 16, 2012 between the Registrant and The Bank of New York Mellon Trust Company, N.A., as successor trustee to The Bank of New York. (Incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K dated and filed October 16, 2012)

4.14

 

Exchange and Registration Rights Agreement dated as of October 16, 2012, by and among the Registrant, Barclays Capital Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, as representatives of the initial purchasers, and the guarantors party thereto. (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated and filed October 16, 2012)

4.15

 

Exchange and Registration Rights Agreement dated as of October 16, 2012, by and among the Registrant, Barclays Capital Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Wells Fargo Securities, LLC, Goldman, Sachs & Co., Morgan Stanley & Co. LLC and Scotia Capital (USA) Inc. (Incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated and filed October 16, 2012)

4.16**

 

Form of Common Stock Certificate

4.17*

 

Form of Preferred Stock Certificate

4.18*

 

Form of Certificate of Designation of Preferred Stock

4.19*

 

Form of Note

4.20*

 

Form of Warrant Agreement

4.21*

 

Form of Purchase Contract

4.22*

 

Form of Unit Agreement and Certificate

5.1**

 

Opinion of Woodburn and Wedge

5.2**

 

Opinion of Gibson, Dunn & Crutcher LLP

12.1**

 

Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends

23.1**

 

Consent of Woodburn and Wedge (Included in Exhibit 5.1)

23.2**

 

Consent of Gibson, Dunn & Crutcher LLP (Included in Exhibit 5.2)

23.3**

 

Consent of Deloitte & Touche LLP

24.1**

 

Power of Attorney (Included on the signature page to the registration statement)

25.1**

 

Statement of Eligibility on Form T-1 of The Bank of New York Mellon Trust Company, N.A.

 


*                  To be filed by amendment or as an exhibit to a document to be incorporated by reference herein in connection with an offering of the offered securities.

**           Filed herewith.

 


Exhibit 4.16

 

06065 COMMON STOCK COMMON STOCK NUMBER SHARES TH PAR VALUE $.05 THIS CERTIFICATE IS TRANSFERABLE IN CANTON, MA, JERSEY CITY, NJ, NEW YORK, NY AND PITTSBURGH, PA TENET HEALTHCARE CORPORATION INCORPORATED UNDER THE LAWS OF THE STATE OF NEVADA SEE REVERSE FOR CERTAIN DEFINITIONS CUSIP 88036 40 7 This Certifies that SPECIMEN is the record holder of FULLY PAID AND NONASSESSABLE SHARES OF COMMON STOCK OF Tenet Healthcare Corporation transferable on the books of the Corporation in person or by duly authorized Attorney upon surrender of this Certificate properly endorsed. This Certificate is not valid until countersigned by the Transfer Agent and registered by the Registrar. Witness the facsimile seal of the Corporation and the facsimile signatures of its duly authorized officers. COUNTERSIGNED AND REGISTERED: COMPUTERSHARE SHAREOWNER SERVICES LLC TRANSFER AGENT AND REGISTRAR BY AUTHORIZED SIGNATURE Dated: [ILLEGIBLE] [ILLEGIBLE] VICE PRESIDENT DEPUTY GENERAL COUNSEL AND CORPORATE SECRETARY TENET HEALTHCARE CORPORATION * INCORPORATED NOV. 7, 1975 NEVADA PRESIDENT AND CHIEF EXECUTIVE OFFICER AMERICAN BANK NOTE COMPANY.

 


A copy of any statement of designations, preferences and relative, participating, optional or other special rights of any classes of stock or series thereof, and any qualifications, limitations or restrictions of such rights, will be furnished to any stock holder of the corporation upon request and without change by writing to the principal office of Tenet Healthcare Corporation. The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM — as tenants in common UNIF GIFT MIN ACT — .............Custodian................ TEN ENT — as tenants by the entireties (Cust) (Minor) JT TEN — as joint tenants with right of under Uniform Gifts to Minors survivorship and not as tenants Act....................................... in common (State) UNIF TRF MIN ACT — ........Custodian (Until age...) (Cust) .......under Uniform Transfers (Minor) to Minors Act..................... (State) Additional abbreviations may also be used though not in the above list. FOR VALUE RECEIVED, hereby sell, assign and transfer unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) Shares of the common stock represented by the within Certificate, and do hereby constitute and appoint Attorney to transfer the said stock on the books of the within named Corporation with full power of substitution in the premises. Dated NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME(S) AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER. Signature(s) Guaranteed By THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

 

 

 

 

Exhibit 5.1

 

WOODBURN AND WEDGE

Attorneys and Counselors At Law

Sierra Plaza

6100 Neil Road, Suite 500

Reno, Nevada 89511-1149

 

Telephone (775) 688-3000

 

Facsimile (775) 688-3088

 

 

 

 

Gregg P. Barnard

 

E-MAIL: gbarnard@woodburnandwedge.com

 

DIRECT DIAL: (775) 688-3025

 

November 27, 2012

 

Tenet Healthcare Corporation

1445 Ross Avenue, Suite 1400

Dallas, Texas 75202

 

Ladies and Gentlemen:

 

We have acted as special Nevada counsel to Tenet Healthcare Corporation, a Nevada corporation (the “ Company ”), in connection with the Company’s filing on the date hereof of a Registration Statement on Form S-3 (the “ Registration Statement ”) with the Securities and Exchange Commission (the “ Commission ”) under the Securities Act of 1933, as amended (the “ Securities Act ”).  The Registration Statement relates to the registration of a presently indeterminate aggregate amount of:  (i) the Company’s common stock, par value $0.05 per share, as described in the Registration Statement (the “ Common Stock ”); (ii) the Company’s preferred stock, par value $0.15 per share (the “ Preferred Stock ”); (iii) debt securities to be issued pursuant to the specific terms described in future prospectus supplements hereto relating to such debt securities (the “ Debt Securities Prospectus Supplement ”) and the transaction documents related to the issuance, sale, delivery and/or authentication of such Debt Securities identified therein (the “ Debt Securities Transaction Documents ”) (the “ Debt Securities ”), (iv) warrants to purchase Debt Securities, Common Stock or Preferred Stock of the Company (the “ Warrants ”), (v) purchase contracts to purchase Common Stock or Preferred Stock of the Company (the “ Purchase Contracts ”), and (vi) units consisting of a combination of two or more of the above securities (the “ Units ”), all of which may be issued from time to time in one offering or multiple offerings.

 

In connection with rendering this opinion, we have examined or are familiar with the Articles of Incorporation of the Company, as amended to the date hereof, the Bylaws of the Company, as amended to the date hereof, the corporate proceedings with respect to the authorization of the Registration Statement, and such other certificates, instruments and documents as we have considered necessary or appropriate for purposes of this opinion. In such examination, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals, conformity to the original documents of all documents submitted to us as copies and the authenticity of the originals of such latter documents.  As to any facts material to our opinion, we have, when relevant facts were not independently established, relied upon the Registration Statement and the aforesaid records, certificates and documents.

 

We are informed by the Company, and our opinions expressed below assume, that the authorized class or series, number of shares, voting power, designations, preferences, limitations, restrictions, relative rights and terms and conditions of the Preferred Stock, the Debt Securities, Warrant and Purchase Contract will be filed either as an exhibit to an amendment to the Registration Statement to be filed after the date of this opinion or as an exhibit to a

 



 

Current Report on Form 8-K to be filed after the Registration Statement has become effective and the particular terms, conditions and relative rights of any Preferred Stock, series of Debt Securities, Warrant and Purchase Contract will be set forth in a supplement to the prospectus forming a part of the Registration Statement.  We assume that the Company has sufficient authorized, unissued and unreserved shares of Common Stock and Preferred Stock (or will validly amend the Company’s Articles of Incorporation to authorize a sufficient number of shares of Common Stock and Preferred Stock prior to the issuance thereof) available for issuance as provided in the Registration Statement and any related amendment thereto or prospectus supplement.

 

Subject to the foregoing and the additional qualifications, limitations and assumptions set forth below, we are of the opinion that:

 

1.             The Company is a corporation duly organized and legally existing under the laws of the State of Nevada and is in good standing under said laws.

 

2.             The Common Stock and the Preferred Stock, as the case may be, will be validly issued, fully paid and nonassessable, when:

 

(a)           such Common Stock or Preferred Stock is specifically authorized for issuance and sale by action, resolutions or consent duly adopted by the Board of Directors and, to the extent required, the stockholders of the Company (“ Equity Authorizing Resolutions ”) approving the pricing, consideration and the rights, preferences, privileges, restrictions, terms and conditions thereof,

 

(b)           in the case of Preferred Stock, the authorized class or series, number of shares, voting power, designations, preferences, limitations, restrictions, relative rights and terms and conditions of the Preferred Stock are set forth in a certificate of designation to be approved by the Company’s Board of Directors, or in an amendment to the Company’s Articles of Incorporation approved by the Company’s Board of Directors and stockholders, which, in each case, is appropriately filed in the office of the Nevada Secretary of State and has become effective prior to the issuance of any shares of such Preferred Stock;

 

(c)           the terms of the offer, issuance and sale of shares of Common Stock or Preferred Stock have been duly established in conformity with the Company’s Articles of Incorporation, Bylaws, the Equity Authorizing Resolutions, and as authorized by the approval of the stockholders of the Company, if such approval is so required;

 

(d)           compliance with the Securities Act and action of the Commission permitting the Registration Statement to become effective; and

 

(e)           the Company has received the consideration provided for in the applicable Equity Authorizing Resolutions.

 

3.             The Debt Securities will be validly issued and constitute the legal, valid and binding obligations of the Company, to the extent that Nevada law governs such issues, when:

 

(a)           the Debt Securities are specifically authorized for issuance by action, resolutions or consent duly adopted by the Board of Directors and, to the extent required, the stockholders of the Company (“ Debt Authorizing Resolutions ”) approving the pricing, terms and conditions of the issuance and sale of the new Debt Securities;

 

(b)           the Debt Securities are issued and delivered in accordance with (i) the provisions of the Debt Securities Prospectus Supplement and the Debt Securities Transaction Documents, (ii) the Company’s Articles of Incorporation and Bylaws, (iii) the Debt Authorizing Resolutions and (iv) the Registration Statement;

 

2



 

(c)           compliance with the Securities Act and the Trust Indenture Act of 1939, as amended, and action of the Commission permitting the Registration Statement to become effective; and

 

(d)           the Company has received the consideration provided for in the applicable Debt Authorizing Resolutions.

 

4.  The Warrants will constitute valid and legally binding obligations of the Company, to the extent that Nevada law governs such issues, when:

 

(a)                                  such Warrants are specifically authorized for issuance by action, resolutions or consent duly adopted by the Board of Directors and, to the extent required, the stockholders of the Company (“ Warrant Authorizing Resolutions ”) which include the pricing and terms upon which the Warrants are to be issued, their form and content and the consideration for which shares or other securities are to be issued in connection therewith;

 

(b)                                  the respective documents and agreements relating to the creation, offering, issuance and sale of the Warrants (the “ Warrant Documents ”) have been duly authorized, executed and delivered and are enforceable in accordance with their terms;

 

(c)                                   the terms of the offer, issuance and sale of such Warrants have been duly established in conformity with the applicable Warrant Documents and Warrant Authorizing Resolutions;

 

(d)                                  the applicable Warrants have been duly executed and countersigned in accordance with the applicable Warrant Documents and created, offered, issued and sold as contemplated in the Registration Statement (and any amendment thereto, including any prospectus supplement), the applicable Warrant Authorizing Resolutions and the applicable Warrant Documents; and

 

(e)                                   the Company has received the consideration for the Warrants provided for in the applicable Warrant Authorizing Resolutions.

 

5.             The Purchase Contracts will constitute valid and legally binding obligations of the Company, to the extent that Nevada law governs such issues, when:

 

(a)                                  such Purchase Contracts are specifically authorized for issuance by action, resolutions or consent duly adopted by the Board of Directors and, to the extent required, the stockholders of the Company (“ Purchase Contract Authorizing Resolutions ”) which include the terms upon which the Purchase Contracts are to be issued, their form and content and the consideration for which shares or other securities are to be issued in connection therewith;

 

(b)                                  the respective documents and agreements relating to the creation, offering, issuance and sale of the Purchase Contracts (the “ Purchase Contract Documents ”) have been duly authorized, executed and delivered and are enforceable in accordance with their terms;

 

(c)                                   the terms of the offer, issuance and sale of such Purchase Contracts have been duly established in conformity with the applicable Purchase Contract Documents and Purchase Contract Authorizing Resolutions;

 

(d)                                  the applicable Purchase Contracts have been duly executed and countersigned in accordance with the applicable Purchase Contract Documents and created, offered, issued and sold as contemplated in the Registration Statement (and any amendment thereto, including any prospectus supplement), the applicable Purchase Contract Authorizing Resolutions and the applicable Purchase Contract Documents; and

 

3



 

(e)                                   the Company has received the consideration for the Purchase Contract provided for in the applicable Purchase Contract Authorizing Resolutions.

 

Our opinions set forth in paragraphs 2, 3, 4 and 5 are subject to (a) the effect of bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws now or hereafter in effect relating to or affecting the rights and remedies of creditors; (b) the effect of general principles of equity, including, without limitation, concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance or injunctive relief regardless of whether considered in a proceeding in equity or at law.

 

We offer no advice and express no opinion as to any provision contained in or otherwise made a part of the Common Stock, Preferred Stock, Debt Securities, Warrants or Purchase Contracts (i) providing for rights of indemnity or contribution, (ii) purporting to waive (or having the effect of waiving) any rights under the Constitution or laws of the United States of America or any state, (iii) providing for, or having the effect of, releasing any person prospectively from liability for its own wrongful or negligent acts, or breach of such documents and instruments, (iv) any provision for liquidated damages, default interest, late charges, monetary penalties, make-whole premiums or other economic remedies to the extent such provisions are deemed to constitute a penalty, (v) any provision requiring the payment of attorneys’ fees, where such payment is contrary to law or public policy, (vi) any provision permitting, upon acceleration of any Debt Securities, collection of that portion of the stated principal amount thereof which might be determined to constitute unearned interest thereon, (vii) the creation, validity, attachment, perfection, or priority of any lien or security interest, (viii) provisions for exclusivity, election or cumulation of rights or remedies, (ix) grants of setoff rights, (x) provisions prohibiting, restricting, or requiring consent to assignment or transfer of any right or property, (xi) provisions purporting to make a guarantor primarily liable rather than as a surety, (xii) provisions purporting to waive modifications of any guaranteed obligation to the extent such modification constitutes a novation, (xiii) any provision to the extent it requires that a claim with respect to a security denominated in other than U.S. dollars (or judgment in respect of such a claim) be converted to U.S. dollars at a rate of exchange at a particular date, to the extent applicable law otherwise provides,  (xiv) specifying the jurisdiction the laws of which shall be applicable thereto or specifying or limiting the jurisdictions before the courts of which cases relating to the securities may be brought, (xv) providing that the failure to exercise any right, remedy or option shall not operate as a waiver thereof, (xvi) to the effect that amendments, waivers and modifications may only be made in writing, (xvii) purporting to establish any evidentiary standard, (xviii) granting any power of attorney or proxies, (xix) purporting to waive or otherwise affect any right to receive notice, (xx) purporting to restrict competition, and (xxi) the severability, if invalid, of provisions to the foregoing effect. We offer no opinion as to any security into which any Debt Securities, Preferred Stock, Warrants or Purchase Contract may be convertible.

 

With your consent, we have assumed that each of the Debt Securities and the supplemental indentures and officers’ certificates pursuant to the Indenture governing such Debt Securities and each Warrant and Warrant Document and Purchase Contract and Purchase Contract Document (collectively, the “ Documents ”) (i) will be duly authorized, executed and delivered by the parties thereto, (ii) that each of the Documents will constitute legally valid and binding obligations of the parties thereto, other than the Company, enforceable against each of them in accordance with their respective terms, and (iii) that the status of each of the Documents as legally valid and binding obligations of the parties will not be affected by any (a) breaches of, or defaults under, agreements or instruments, (b) violations of statutes, rules, regulations or court or governmental orders, or (c) failures to obtain required consents, approvals or authorizations from or to make required registrations, declarations or filings with, governmental authorities.

 

The foregoing opinion is limited to the matters expressly set forth herein and no opinion may be implied or inferred beyond the matters expressly stated.  We disclaim any obligation to update this letter for events occurring after the date of this letter, or as a result of knowledge acquired by us after that date, including changes in any of the statutory or decisional law after the date of this letter.  We are members of the bar of the State of Nevada.  We express no opinion as to the effect and application of any United States federal law, rule or regulation or any federal or state securities laws of any state, including the State of Nevada.  We are not opining on, and assume no

 

4



 

responsibility as to, the applicability to or the effect on any of the matters covered herein of the laws of any other jurisdiction, other than the laws of Nevada as presently in effect.

 

We hereby consent:

 

1.             To being named in the Registration Statement and in any amendments thereto as counsel for the Company;

 

2.             To the statements with reference to our firm made in the Registration Statement of the Company on Form S-3; and

 

3.             To the filing of this opinion as an exhibit to the Registration Statement.

 

In giving this consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.  The law firm of Gibson, Dunn & Crutcher LLP may rely on this opinion in connection with the opinion to be rendered by them in connection with the Registration Statement.

 

 

Sincerely,

 

 

 

 

 

WOODBURN AND WEDGE

 

 

 

 

 

/s/ Gregg P. Barnard, Esq.

 

Gregg P. Barnard, Esq.

 

5


Exhibit 5.2

 

 

Client: 64230-00999

 

November  27 , 2012

 

Tenet Healthcare Corporation
1445 Ross Avenue, Suite 1400
Dallas, TX 75202

 

Re:                              Tenet Healthcare Corporation
Registration Statement on Form S-3

 

Ladies and Gentlemen:

 

We have acted as counsel to Tenet Healthcare Corporation, a Nevada corporation (the “ Company ”), in connection with the preparation and filing with the Securities and Exchange Commission (the “ Commission ”) of a Registration Statement on Form S-3 (the “ Registration Statement ”) under the Securities Act of 1933, as amended (the “ Securities Act ”), relating to the registration under the Securities Act and the proposed issuance and sale from time to time pursuant to Rule 415 under the Securities Act, together or separately and in one or more series (if applicable) of:

 

(i)                                      shares of the Company’s common stock, par value $0.05 per share (the “ Common Stock ”);

 

(ii)                                   shares of the Company’s preferred stock, par value $0.15 per share (the “ Preferred Stock ”);

 

(iii)                                the Company’s unsecured debt securities (collectively, the “ Debt Securities ”);

 

(iv)                               warrants for the purchase of Common Stock, Preferred Stock or Debt Securities (the “ Warrants ”);

 

(v)                                  contracts for the purchase or sale of Common Stock or Preferred Stock (the “ Purchase Contracts ”); and

 

(vi)                               units of the Company comprised of any combination of Common Stock, Preferred Stock, Debt Securities or Purchase Contracts (the “ Units ”).

 

The Common Stock, Preferred Stock, Debt Securities, Warrants, Purchase Contracts and Units are collectively referred to herein as the “ Securities .”  The Debt Securities are to

 

 



 

be issued under an indenture dated as of November 6, 2001, between the Company and The Bank of New York Mellon Trust Company (the “ Trust Company ”), as indenture trustee (the “ Base Indenture ”).

 

In arriving at the opinions expressed below, we have examined originals, or copies certified or otherwise identified to our satisfaction as being true and complete copies of the originals, of the Base Indenture, specimen Common Stock certificate and such other documents, corporate records, certificates of officers of the Company and of public officials and other instruments as we have deemed necessary or advisable to enable us to render these opinions.  In our examination, we have assumed the genuineness of all signatures, the legal capacity and competency of all natural persons, the authenticity of all documents submitted to us as originals and the conformity to original documents of all documents submitted to us as copies.  As to any facts material to these opinions, we have relied to the extent we deemed appropriate and without independent investigation upon statements and representations of officers and other representatives of the Company and others.

 

We are not admitted or qualified to practice law in the State of Nevada.  Therefore, we have relied upon the opinion of Woodburn and Wedge with respect to matters governed by the laws of the State of Nevada.

 

We have assumed without independent investigation that:

 

(i)                                      at the time any Securities are sold pursuant to the Registration Statement (the “ Relevant Time ”), the Registration Statement and any supplements and amendments thereto (including post-effective amendments) will be effective and will comply with all applicable laws;

 

(ii)                                   at the Relevant Time, a prospectus supplement will have been prepared and filed with the Commission describing the Securities offered thereby and all related documentation and will comply with all applicable laws;

 

(iii)                                all Securities will be issued and sold in the manner stated in the Registration Statement and the applicable prospectus supplement;

 

(iv)                               at the Relevant Time, all corporate or other action required to be taken by the Company to duly authorize each proposed issuance of Securities and any related documentation (including (i) the due reservation of any shares of Common Stock or Preferred Stock for issuance upon exercise, conversion or exchange of any Securities for Common Stock or Preferred Stock (a “ Convertible Security ”), and (ii) the execution (in the case of certificated Securities), delivery and performance of the Securities and any related

 

2



 

documentation referred to in paragraphs 1 through 6 below) shall have been duly completed and shall remain in full force and effect;

 

(v)                                  upon issuance of any Common Stock or Preferred Stock, including upon exercise, conversion or exchange of any Convertible Security, the total number of shares of Common Stock or Preferred Stock issued and outstanding will not exceed the total number of shares of Common Stock or Preferred Stock, as applicable, that the Company is then authorized to issue under its articles of incorporation and other relevant documents; and

 

(vi)                               at the Relevant Time, a definitive purchase, underwriting or similar agreement and any other necessary agreement with respect to any Securities offered or issued will have been duly authorized by all necessary corporate or other action of the Company and duly executed and delivered by the Company and the other parties thereto.

 

Based on the foregoing and in reliance thereon, and subject to the assumptions, exceptions, qualifications and limitations set forth herein, we are of the opinion that:

 

1.                                       With respect to any Debt Securities, when:

 

a.                                       the terms and conditions of such Debt Securities have been duly established by supplemental indenture or officers’ certificate in accordance with the terms and conditions of the Base Indenture,

 

b.                                       any such supplemental indenture has been duly executed and delivered by the Company and the Trust Company (together with the Base Indenture, the “ Indenture ”), and

 

c.                                        such Debt Securities have been executed (in the case of certificated Debt Securities), delivered and authenticated in accordance with the terms of the applicable Indenture and issued and sold for the consideration set forth in the applicable definitive purchase, underwriting or similar agreement,

 

such Debt Securities will be legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms.

 

2.                                       With respect to any Warrants, when:

 

a.                                       the warrant agreement relating to such Warrants (the “ Warrant Agreement ”), if any, has been duly executed and delivered by the Company and each other party thereto,

 

3



 

b.                                       the terms of the Warrants have been established in accordance with the Warrant Agreement, if any, and the applicable definitive purchase, underwriting or similar agreement, and

 

c.                                        the Warrants have been duly executed (in the case of certificated Warrants) and delivered in accordance with the Warrant Agreement, if any, and the applicable definitive purchase, underwriting or similar agreement for the consideration provided for therein,

 

such Warrants will be legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their terms.

 

3.                                       With respect to any Purchase Contracts, when:

 

a.                                       the related purchase contract agreement (“ Purchase Contract Agreement ”), if any, has been duly executed by the Company and each other party thereto,

 

b.                                       the terms of the Purchase Contracts have been established in accordance with the Purchase Contract Agreement, if any, or the applicable definitive purchase, underwriting or similar agreement,

 

c.                                        the terms of any collateral or security arrangements relating to such Purchase Contracts have been established and the agreements thereto have been validly executed and delivered by each of the parties thereto and any collateral has been deposited with the collateral agent, if applicable, in accordance with such arrangements, and

 

d.                                       such Purchase Contracts have been executed (in the case of certificated Purchase Contracts) and delivered in accordance with the Purchase Contract Agreement, if any, and the applicable definitive purchase, underwriting or similar agreement for the consideration provided for therein,

 

such Purchase Contracts will be legal, valid and binding obligations of the Company, enforceable in accordance with their terms.

 

4



 

4.                                       With respect to any Units, when:

 

a.                                       the unit agreement relating to the Units (the “ Unit Agreement ”), if any, has been duly executed and delivered by the Company and each other party thereto,

 

b.                                       the terms of the Units have been duly established in accordance with the Unit Agreement, if any, and the applicable definitive purchase, underwriting or similar agreement, and

 

c.                                        the Units have been duly executed (in the case of certificated Units)  and delivered in accordance with the Unit Agreement, if any, and the applicable definitive purchase, underwriting or similar agreement for the consideration provided for therein,

 

the Units will be legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their terms.

 

The opinions expressed above are subject to the following exceptions, qualifications, limitations and assumptions:

 

A.                                     We render no opinion herein as to matters involving the laws of any jurisdiction other than the State of New York.  This opinion is limited to the effect of the current state of the laws of the State of New York and the facts as they currently exist.  We assume no obligation to revise or supplement this opinion in the event of future changes in such laws or the interpretations thereof or such facts.

 

B.                                     The opinions above are each subject to (i) the effect of any bankruptcy, insolvency, reorganization, moratorium, arrangement or similar laws affecting the rights and remedies of creditors’ generally, including the effect of statutory or other laws regarding fraudulent transfers or preferential transfers, and (ii) general principles of equity, including concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance, injunctive relief or other equitable remedies regardless of whether enforceability is considered in a proceeding in equity or at law.

 

C.                                     We express no opinion regarding the effectiveness of (i) any waiver of stay, extension or usury laws or of unknown future rights, and (ii) provisions relating to indemnification, exculpation or contribution, to the extent such provisions may be held unenforceable as contrary to public policy or federal or state securities laws.

 

D.                                     To the extent relevant to our opinions in paragraphs 2, 3 and 4 and not covered by our opinion in paragraph 1, we have assumed that any securities, currencies or commodities underlying, comprising or issuable upon exchange, conversion or exercise of

 

5



 

any Warrants, Purchase Contracts or Units are validly issued, fully paid and non-assessable (in the case of an equity security) or a legal, valid and binding obligation of the issuer thereof, enforceable against such issuer in accordance with its terms.

 

You have informed us that you intend to issue Securities from time to time on a delayed or continuous basis, and we understand that prior to issuing any Securities pursuant to the Registration Statement (i) you will advise us in writing of the terms thereof, and (ii) you will afford us an opportunity to (x) review the operative documents pursuant to which such Securities are to be issued or sold (including the applicable offering documents), and (y) file such supplement or amendment to this opinion (if any) as we may reasonably consider necessary or appropriate.

 

We consent to the filing of this opinion as an exhibit to the Registration Statement, and we further consent to the use of our name under the caption “Validity of the Securities” in the Registration Statement and the prospectus that forms a part thereof. In giving these consents, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.

 

Very truly yours,

 

/s/ Gibson, Dunn & Crutcher LLP

 

6


Exhibit 12.1

 

TENET HEALTHCARE CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

(Unaudited)

 

 

 

Years Ended December 31,

 

Nine Months Ended
September 30,

 

 

 

2011

 

2010

 

2009

 

2008

 

2007

 

2012

 

2011

 

 

 

(Dollars in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, before income taxes

 

$

164

 

$

158

 

$

191

 

$

43

 

$

(105

)

$

237

 

$

226

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of affiliates

 

8

 

5

 

6

 

13

 

20

 

6

 

5

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends received

 

 

 

 

3

 

3

 

 

 

Interest portion of rent expense

 

45

 

42

 

44

 

42

 

40

 

36

 

33

 

Interest expense

 

375

 

424

 

445

 

418

 

419

 

303

 

275

 

Amortization of capitalized interest

 

9

 

9

 

9

 

8

 

8

 

7

 

7

 

Earnings (loss), as adjusted

 

$

585

 

$

628

 

$

683

 

$

501

 

$

345

 

$

577

 

$

536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

375

 

424

 

445

 

418

 

419

 

303

 

275

 

Capitalized interest

 

8

 

4

 

9

 

10

 

11

 

4

 

5

 

Interest portion of rent expense

 

45

 

42

 

44

 

42

 

40

 

36

 

33

 

Total fixed charges

 

$

428

 

$

470

 

$

498

 

$

470

 

$

470

 

$

343

 

$

313

 

Preference dividends pre-tax

 

38

 

38

 

10

 

 

 

17

 

29

 

Total combined fixed charges and preferred dividends

 

$

466

 

$

508

 

$

508

 

$

470

 

$

470

 

$

360

 

$

342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

1.4x

 

1.3x

 

1.4x

 

1.1x

 

 

1.7x

 

1.7x

 

Ratio of earnings to combined fixed charges and preferred dividends

 

1.3x

 

1.2x

 

1.3x

 

1.1x

 

 

1.6x

 

1.6x

 

Deficiency

 

 

 

 

 

125

 

 

 

 


Exhibit 23.3

 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

We consent to the incorporation by reference in this Registration Statement on Form S-3 of our report dated February 27, 2012, except for Notes 1, 4, and 22, as to which the date is October 1, 2012, relating to the consolidated financial statements and financial statement schedule of Tenet Healthcare Corporation and subsidiaries (the “Company”) (which report expresses an unqualified opinion and includes explanatory paragraphs relating to the adoption of the requirements of accounting guidance related to the presentation of the provision for doubtful accounts in the consolidated statements of operations, effective December 31, 2011, and the retrospective adjustment as a result of a change in the Company’s reportable business segments), and our report dated February 27, 2012, related to the effectiveness of Tenet Healthcare Corporation’s internal control over financial reporting, appearing in the Current Report on Form 8-K of Tenet Healthcare Corporation dated October 1, 2012. We also consent to the reference to us under the heading “Experts” in the Prospectus, which is part of this Registration Statement.

 

/s/ Deloitte & Touche LLP

 

Dallas, Texas

November  26 , 2012

 


 

Exhibit 25.1

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM T-1

 

STATEMENT OF ELIGIBILITY
UNDER THE TRUST INDENTURE ACT OF 1939 OF A
CORPORATION DESIGNATED TO ACT AS TRUSTEE

 

CHECK IF AN APPLICATION TO DETERMINE
ELIGIBILITY OF A TRUSTEE PURSUANT TO
SECTION 305(b)(2)         
o

 


 

THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A.

(Exact name of trustee as specified in its charter)

 

 

 

95-3571558

(Jurisdiction of incorporation

 

(I.R.S. employer

if not a U.S. national bank)

 

identification no.)

 

 

 

400 South Hope Street

 

 

Suite 400

 

 

Los Angeles, California

 

90071

(Address of principal executive offices)

 

(Zip code)

 


 

TENET HEALTHCARE CORPORATION

(Exact name of obligor as specified in its charter)

 

Nevada

 

95-2557091

(State or other jurisdiction of

 

(I.R.S. employer

incorporation or organization)

 

identification no.)

 

 

 

1445 Ross Avenue, Suite 1400

 

 

Dallas, Texas

 

75202

(Address of principal executive offices)

 

(Zip code)

 


 

Debt Securities
(Title of the indenture securities)

 

 

 



 

1.                                       General information.  Furnish the following information as to the trustee:

 

(a)                                  Name and address of each examining or supervising authority to which it is subject.

 

Name

 

Address

Comptroller of the Currency

 

Washington, DC 20219

United States Department of the Treasury

 

 

 

 

 

Federal Reserve Bank

 

San Francisco, CA 94105

 

 

 

Federal Deposit Insurance Corporation

 

Washington, DC 20429

 

(b)                              Whether it is authorized to exercise corporate trust powers.

 

Yes.

 

2.                                       Affiliations with Obligor.

 

If the obligor is an affiliate of the trustee, describe each such affiliation.

 

None.

 

16.                                List of Exhibits.

 

Exhibits identified in parentheses below, on file with the Commission, are incorporated herein by reference as an exhibit hereto, pursuant to Rule 7a-29 under the Trust Indenture Act of 1939 (the “Act”) and 17 C.F.R. 229.10(d).

 

1.                                       A copy of the articles of association of The Bank of New York Mellon Trust Company, N.A., formerly known as The Bank of New York Trust Company, N.A. (Exhibit 1 to Form T-1 filed with Registration Statement No. 333-121948 and Exhibit 1 to Form T-1 filed with Registration Statement No. 333-152875).

 

2.                                       A copy of certificate of authority of the trustee to commence business. (Exhibit 2 to Form T-1 filed with Registration Statement No. 333-121948).

 

3.                                       A copy of the authorization of the trustee to exercise corporate trust powers (Exhibit 3 to Form T-1 filed with Registration Statement No. 333-152875).

 

2



 

4.                                       A copy of the existing by-laws of the trustee (Exhibit 4 to Form T-1 filed with Registration Statement No. 333-162713).

 

6.                                       The consent of the trustee required by Section 321(b) of the Act (Exhibit 6 to Form T-1 filed with Registration Statement No. 333-152875).

 

7.                                       A copy of the latest report of condition of the Trustee published pursuant to law or to the requirements of its supervising or examining authority.

 

3



 

SIGNATURE

 

Pursuant to the requirements of the Act, the Trustee, The Bank of New York Mellon Trust Company, N.A., a banking association organized and existing under the laws of the United States of America, has duly caused this statement of eligibility to be signed on its behalf by the undersigned, thereunto duly authorized, all in the City of Los Angeles, and State of California, on the 21st day of November, 2012.

 

 

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

 

 

 

By:

/s/

Teresa Petta

 

Name:

Teresa Petta

 

Title:

Vice President

 

4



 

EXHIBIT 7

 

Consolidated Report of Condition of

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

of 400 South Hope Street, Suite 400, Los Angeles, CA 90071

 

At the close of business September 30, 2012, published in accordance with Federal regulatory authority instructions.

 

 

 

 

 

 

Dollar Amounts

 

 

 

 

 

 

in Thousands

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and balances due from depository institutions:

 

 

 

 

 

 

Noninterest-bearing balances and currency and coin

 

 

 

 

752

 

Interest-bearing balances

 

 

 

 

384

 

Securities:

 

 

 

 

 

 

Held-to-maturity securities

 

 

 

 

0

 

Available-for-sale securities

 

 

 

 

664,282

 

Federal funds sold and securities purchased under agreements to resell:

 

 

 

 

 

 

Federal funds sold

 

 

 

 

66,500

 

Securities purchased under agreements to resell

 

 

 

 

0

 

Loans and lease financing receivables:

 

 

 

 

 

 

Loans and leases held for sale

 

 

 

 

0

 

Loans and leases, net of unearned income

0

 

 

 

 

 

LESS: Allowance for loan and lease losses

0

 

 

 

 

 

Loans and leases, net of unearned income and allowance

 

 

 

 

0

 

Trading assets

 

 

 

 

0

 

Premises and fixed assets (including capitalized leases)

 

 

 

 

6,314

 

Other real estate owned

 

 

 

 

0

 

Investments in unconsolidated subsidiaries and associated companies

 

 

 

 

0

 

Direct and indirect investments in real estate ventures 

 

 

 

 

0

 

Intangible assets:

 

 

 

 

 

 

Goodwill

 

 

 

 

856,313

 

Other intangible assets

 

 

 

 

166,282

 

Other assets

 

 

 

 

127,866

 

Total assets

 

 

 

 

$

1,888,693

 

 



 

LIABILITIES

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

In domestic offices

 

 

535

 

Noninterest-bearing

535

 

 

 

Interest-bearing

0

 

 

 

Not applicable

 

 

 

 

Federal funds purchased and securities sold under agreements to repurchase:

 

 

 

 

Federal funds purchased

 

 

0

 

Securities sold under agreements to repurchase

 

 

0

 

Trading liabilities

 

 

0

 

Other borrowed money:

 

 

 

 

(includes mortgage indebtedness and obligations under capitalized leases)

 

 

0

 

Not applicable

 

 

 

 

Not applicable

 

 

 

 

Subordinated notes and debentures

 

 

0

 

Other liabilities

 

 

230,606

 

Total liabilities

 

 

231,141

 

Not applicable

 

 

 

 

 

 

 

 

 

EQUITY CAPITAL

 

 

 

 

 

 

 

 

 

Perpetual preferred stock and related surplus

 

 

0

 

Common stock

 

 

1,000

 

Surplus (exclude all surplus related to preferred stock)

 

 

1,121,520

 

Not available

 

 

 

 

Retained earnings

 

 

530,026

 

Accumulated other comprehensive income

 

 

5,006

 

Other equity capital components

 

 

0

 

Not available

 

 

 

 

Total bank equity capital

 

 

1,657,552

 

Noncontrolling (minority) interests in consolidated subsidiaries

 

 

0

 

Total equity capital

 

 

1,657,552

 

Total liabilities and equity capital

 

 

1,888,693

 

 

I, Cherisse Waligura, CFO of the above-named bank do hereby declare that the Reports of Condition and Income (including the supporting schedules) for this report date have been prepared in conformance with the instructions issued by the appropriate Federal regulatory authority and are true to the best of my knowledge and belief.

 

Cherisse Waligura

)

CFO

 

We, the undersigned directors (trustees), attest to the correctness of the Report of Condition (including the supporting schedules) for this report date and declare that it has been examined by us and to the best of our knowledge and belief has been prepared in conformance with the instructions issued by the appropriate Federal regulatory authority and is true and correct.

 

Troy Kilpatrick, President

)

 

Frank P. Sulzberger, MD

)

Directors (Trustees)

William D. Lindelof, MD

)