HCA gets $2 billion 364-day secured term loan facility

By Sarah Lizee

Olympia, Wash., March 20 – HCA Healthcare, Inc. subsidiary HCA Inc. entered into a credit agreement on Wednesday with Bank of America, NA as administrative agent, providing for a $2 billion 364-day secured term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

BofA Securities, Inc. and Wells Fargo Securities, LLC are joint lead arrangers and bookrunners.

The facility was undrawn at closing.

Interest is Libor plus 250 basis points. There is a 0% Libor floor.

The credit agreement’s financial covenants require that the borrower maintain a ratio of consolidated debt to consolidated EBITDA for any four consecutive fiscal quarter period of not more than 6.75 to 1.00.

The company said the financing is intended to enhance its flexibility in light of the current uncertainty resulting from the novel coronavirus pandemic.

HCA is a Nashville-based health care services provider.

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