Tenet Healthcare extends $1 billion credit agreement, lowers interest

By Tali Rackner

Norfolk, Va., Dec. 9 – Tenet Healthcare Corp. amended its $1 billion amended and restated credit agreement on Dec. 4 to extend the maturity and reduce interest, according to an 8-K filing with the Securities and Exchange Commission.

Citicorp USA, Inc. is the administrative agent.

As amended, the facility will terminate on the earlier of (a) Dec. 4, 2020 and (b) 45 business days prior to the maturity date of any series of Tenet’s senior notes due in 2018, 2019 or 2020 (springing maturity date), unless (i) prior to each springing maturity date, with respect to at least 80% of the aggregate principal amount of the applicable series of notes, the maturity date is extended by up to one year or such amount is repaid, defeased, discharged or refinanced or (ii) on each such springing maturity date, the excess availability condition, determined on a pro forma basis after giving effect to the full repayment of the applicable series of the notes, is satisfied.

The initial interest rate is Libor plus 150 basis points. The spread over Libor ranges from 125 bps to 175 bps, based on available credit.

The commitment fee on the undrawn portion is 37.5 bps and ranges from 25 bps to 37.5 bps, also based on available credit.

Tenet is a Dallas-based health-care services company.

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