| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for DaVita Inc. > News item |
DaVita plans new loans and unsecured debt with HealthCare Partners buy
By Sara Rosenberg
New York, May 21 - DaVita Inc. expects to get new senior secured loans and issue unsecured debt to help fund its acquisition of HealthCare Partners, according to an 8-K filed with the Securities and Exchange Commission on Monday.
J.P. Morgan Securities LLC is the lead bank on the financing.
All-in-all, the company anticipates using $3.8 billion of new debt for the transaction, bringing pro forma leverage to 3.7 times, and available cash.
The company plans on deleveraging quickly, with its long-term leverage goal being between 3 and 3.5 times, company officials said in a conference call.
Under the agreement, DaVita is buying HealthCare Partners for about $4.42 billion, subject to post-close adjustments and contingent consideration.
The purchase price consists of $3.66 billion in cash and roughly 9.38 million shares of DaVita common stock.
And, there is potential for an additional up to $275 million cash payment if certain performance targets are achieved in 2012 and 2013 by HealthCare Partners.
With the transaction, the company will amend its existing senior secured credit facility to allow for the new debt.
Closing is expected early in the fourth quarter, subject to receipt of Hart-Scott-Rodino approval, obtaining the approval of HealthCare Partners' owners and other customary conditions.
Upon closing, the combined company will be named DaVita HealthCare Partners Inc.
In 2011, HealthCare Partners' revenue was about $2.4 billion, EBITDA was $527 million and operating income was $488 million.
DaVita is a Denver-based provider of kidney care services for those diagnosed with chronic kidney disease. HealthCare Partners is a Torrance, Calif.-based operator of medical groups and physician networks.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.