Tenet Healthcare increases revolving commitments to $1.9 billion

By Sarah Lizee

Olympia, Wash., April 27 – Tenet Healthcare Corp. amended its credit agreement on Friday with Citicorp USA, Inc. as administrative agent to increase revolving credit commitments to $1.9 billion, according to an 8-K filing with the Securities and Exchange Commission.

The amount is subject to borrowing availability.

The amendment also increased the advance rate and raised limits on some eligible accounts receivable in the calculation of the borrowing base, in each case, for 364 days following the closing date of the amendment.

The facility continues to provide for a $200 million sub-facility for letters of credit.

The facility will continue to terminate on the earlier of Sept. 12, 2024, subject to a springing maturity relating to the company’s senior notes due in 2022, 2023 or 2024.

Interest on the revolver is Libor plus 175 basis points initially. The margin can range from 150 bps to 200 bps, based on availability.

There is a commitment fee that ranges from 25 bps to 37.5 bps.

The company is a Dallas-based health care provider.

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