In the latest sign, HCA Inc., one of the nation's largest hospital operators, plans to use a specially formed company as part of a plan to pay a $2 billion dividend to its private-equity owners.
The payout plan is another indication of the dizzying heights in this year's junk-bond sales boom. Companies have raced to issue a record number of junk bonds and in some cases have provided less protection for investors than in the past.
The dividend, HCA's third this year, will go to private-equity investors including Kohlberg Kravis Roberts & Co., which trades as KKR & Co., and Bain Capital LLC. It will be financed through the sale of $1.5 billion in junk debt maturing in 2021 and the use of HCA credit lines.Thank you Ben Bernanke. You are correct, QE II is already working.