HCA extends revolving commitments to 2019, changes other terms

By Angela McDaniels

Tacoma, Wash., Feb. 28 - HCA Holdings, Inc. subsidiary HCA Inc. amended its cash flow credit agreement on Wednesday to extend the maturity date of the revolving credit commitments to Feb. 26, 2019, according to an 8-K filing with the Securities and Exchange Commission.

The company also amended the credit agreement to, among other things

• Permit debt to be incurred by non-guarantor restricted subsidiaries of HCA in an aggregate principal amount at any time outstanding not to exceed $2 billion;

• Remove the restriction on assumed debt that sets a maximum amount of scheduled inside payments after giving effect to the incurrence thereof;

• Increase the basket for debt incurred by foreign subsidiaries to 5.0% of total assets of domestic and foreign subsidiaries from 2.5%;

• Amend the $6.6 billion general disposition basket to only apply during any five-year rolling period;

• Include leverage-based step-downs to the percentage of the net cash proceeds of certain asset sales that are required to be applied to prepay term loans; and

• Permit investments, dividends and distributions subject to compliance with a pro forma total net leverage ratio of HCA and its restricted subsidiaries of less than or equal to 4.25 to 1.00.

Bank of America, NA is the administrative agent.

HCA is a Nashville-based health-care services company.

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