DaVita in-market with $1.28 billion credit facility

By Sara Rosenberg

New York, July 22 - DaVita Inc. is in-market with a $1.28 billion credit facility, according to a syndicate document.

Credit Suisse First Boston is the sole lead arranger and sole bookrunner on the deal that launched in a bank meeting Tuesday.

The facility consists of a $1.03 billion six-year term loan B with an interest rate of Libor plus 200 basis points and a $250 million six-year term loan C add-on with an interest rate of Libor plus 175 basis points, the document said.

On Thursday, DaVita announced that it has entered into a definitive agreement to acquire Physicians Dialysis Inc. in a cash-for-stock merger transaction valued at about $150 million. The company expects to close the transaction by the end of the third quarter.

Completion of the transaction is subject to customary closing conditions including the receipt of bank approval under the terms of the credit facility.

The $250 million term loan C add-on will be used to fund ongoing acquisition activities and potential share repurchases over time, according to a company news release.

DaVita is an El Segundo, Calif., provider of dialysis services.

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