Tenet Healthcare amends credit agreement, pushes maturity to 2027

By Mary-Katherine Stinson

Lexington, Ky., March 17 – Tenet Healthcare Corp. entered into a seventh amendment to its existing amended and restated senior secured credit facility which capped the commitments at $1.5 billion subject and extended the maturity date to March 16, 2027, according to an 8-K filing with the Securities and Exchange Commission and a company press release.

The amendment was effective March 16.

The amendment also replaces the interest rate basis with SOFR from Libor.

The starting interest rate for the revolver is SOFR plus 125 basis points. Interest will vary between SOFR plus 125 bps and 175 bps in each case based upon available credit under the facility.

There is a commitment fee that ranges between 25 bps and 37.5 bps.

There is a $200 million sub-facility available for letters of credit.

The borrowing ability is calculated by reference to a borrowing base calculated by specified percentages of eligible accounts receivable, eligible inventory and Medicaid supplemental payments.

Termination of the facility will occur on the earlier of either the scheduled maturity date or the springing maturity date which is 45 days prior to the maturity date of any series of the company’s senior notes and/or senior secured notes provided that the principal amount of the series exceeds $2.5 billion each.

However, if prior to each springing maturity date, the maturity is extended by at least one year on at least 80% of the principal on the applicable series of notes or the amount is repaid, discharged or refinanced then the excess availability condition, determined on a pro forma basis, will be satisfied.

Citicorp USA, Inc. is the administrative agent.

Bank of America, NA is the syndication agent.

Citibank, NA and Bank of America, NA are the joint lead arrangers.

Citibank, NA, Bank of America, NA, Capital One, NA, Deutsche Bank Securities Inc., Fifth Third Bank, NA, Goldman Sachs Bank USA, JPMorgan Chase Bank, NA, RBC Capital Markets, Santander Bank, NA, Bank of Nova Scotia, Truist Securities, Inc. and Wells Fargo Capital Finance, LLC are the joint bookrunners.

Barclays, Capital One, NA, Deutsche Bank Securities Inc., Fifth Third Bank, NA, Goldman Sachs Bank USA, JPMorgan Chase Bank, NA, Royal Bank of Canada, Santander Bank, NA, Truist Bank, Bank of Nova Scotia and Wells Fargo Capital Finance, LLC are the co-documentation agents.

Proceeds may be used for working capital and general corporate purposes.

Tenet is a Dallas-based health care company.

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