DaVita driving by with $750 million tap of 4 5/8% notes due 2030; initial talk 101.25-101.75

By Paul A. Harris

Portland, Ore., Feb. 24 – DaVita Inc. plans to price a $750 million add-on to its 4 5/8% senior notes due June 1, 2030 (existing ratings Ba3/B+) in a Wednesday drive-by, according to market sources.

Initial guidance has the notes pricing at 101.25 to 101.75, a trader said.

J.P. Morgan Securities LLC is the bookrunner.

The Rule 144A and Regulation S notes become callable after June 1, 2025 at 102.313.

The Denver-based dialysis services provider plans to use the proceeds to pay down its revolver and for general corporate purposes, which may include, without limitation, repayment of other debt and repurchases of its common stock.

The original $1.75 billion issue priced in May 2020.

The add-on notes will become fungible with the original notes.

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