DOW JONES NEWSWIRES 
 

Investors have shown strong interest in Tenet Healthcare Corp.'s (THC) note buyback, tendering $891.4 million in outstanding senior notes by the early tender date as part of the hospital operator's offer to buy back up to $1 billion in notes maturing in 2014.

The company has been trying to turn itself around following years of financial and legal trouble, cutting costs and conducting debt exchanges. Meanwhile, hospitals in general have been cutting back on capital spending and taking other measures to conserve cash as rising unemployment threatens to increase the ranks of the uninsured and consumers put off elective procedures.

Holders of the notes tendered before the deadline will receive the notes' full face value plus accrued and unpaid interest. Any notes tendered from now until the offer expires at midnight June 25 will get $970 per $1,000 of principal.

The company said last week it would offer $450 million in 10-year senior notes as part of its plan to improve financial flexibility.

Tenet lowered its 2009 revenue view earlier this month because of lower-than-expected admissions. The company has said recently it is dealing with lower-than-expected profitable commercial managed-care admissions.

Tenet's shares closed Thursday at $3.49 and haven't traded premarket. Despite more than tripling so far this year, the stock is still down 39% in the last 12 months.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com