DENVER, Aug. 12, 2019 /PRNewswire/ -- DAVITA INC.
(NYSE: DVA) ( "DaVita" or the "Company"), a Fortune
500® health care provider focused on transforming
care delivery to improve quality of life for patients around the
globe and the largest provider of kidney care services in the U.S.,
announced today that it has entered into a new $5.5 billion senior secured credit
agreement, dated as of August 12, 2019, with the guarantors
party thereto, the several banks and other financial institutions
or entities party thereto, and Wells Fargo Bank, National
Association, as administrative and collateral agent (the "New
Credit Agreement"). The New Credit Agreement consists of a
five-year secured revolving loan facility in an aggregate amount of
$1.0 billion, a five-year
secured term loan A facility with a delayed draw feature in an
aggregate amount of $1.75 billion and a seven-year secured term
loan B facility in an aggregate amount of $2.75 billion. A portion of the proceeds
from borrowings made under the New Credit Agreement was used to
repay all borrowings outstanding under the Company's prior credit
agreement.
By entering into the New Credit Agreement, the Company satisfied
the financing condition to the closing of its modified "Dutch
auction" tender offer for up to $1.2 billion of its common stock at a price
per share not less than $53.50 and
not more than $61.50.
Contact Information
Investors:
Jim Gustafson
Vice President, Investor Relations
(310) 536-2585
ir@davita.com
About DaVita Inc. DaVita (NYSE: DVA) is a Fortune
500® health care provider focused on transforming
care delivery to improve quality of life for patients around the
globe. DaVita is the largest provider of kidney care services in
the U.S. and has been a leader in clinical quality and innovation
for 20 years. Through DaVita Kidney
Care, DaVita treats patients with chronic kidney failure and
end stage renal disease. DaVita is committed to bold,
patient-centric care models, implementing the latest technologies
and moving toward integrated care offerings for all. As of
June 30, 2019, DaVita served approximately 205,000 patients at
2,723 outpatient dialysis centers in the
United States, and also operated 248 outpatient dialysis
centers in nine countries across the world. DaVita has reduced
hospitalizations, improved mortality, and worked collaboratively to
propel the kidney care industry to adopt an equitable and
high-quality standard of care for all patients, everywhere. To
learn more about how DaVita is leading the health care evolution,
please, visit DaVita.com/About.
DaVita Inc. and its representatives may from time to time
make written and oral forward-looking statements, including
statements in this release, filings with the Securities and
Exchange Commission ("SEC"), reports to stockholders and in
meetings with investors and analysts. All such statements in this
release, other than statements of historical fact, are
forward-looking statements and as such are intended to be covered
by the safe harbor for "forward-looking statements". Without
limiting the foregoing, statements including the words "expect,"
"intend," "will," "plan," "anticipate," "believe," "forecast,"
"guidance," "outlook," "goals," and similar expressions are
intended to identify forward-looking statements.
These forward-looking statements include but are not limited
to statements related to our expectations regarding our proposed
purchase of shares in the tender offer referred to above, the
amount of shares to be purchased and the purchase price per
share.
Our actual results and other events could differ materially
from any forward-looking statements due to numerous factors that
involve substantial known and unknown risks and uncertainties.
These risks and uncertainties include, among other things:
- our ability to satisfy the remaining conditions to the
tender offer;
- the price per share at which we ultimately determine to
purchase shares in the tender offer and the number of shares
tendered in the tender offer;
- our ability to complete the tender offer, including the
number of shares we are able to purchase pursuant to the tender
offer, if any;
- the price per share at which we ultimately purchase shares
in the tender offer and the number of shares purchased, if
any;
- our ability to achieve the benefits contemplated by the
tender offer;
- any adverse impact that the tender offer may have on us and
the trading market for our common stock;
- the concentration of profits generated by higher-paying
commercial payor plans for which there is continued downward
pressure on average realized payment rates, and a reduction in the
number of patients under such plans, including as a result of
restrictions or prohibitions on the use and/or availability of
charitable premium assistance, which may result in the loss of
revenues or patients, or our making incorrect assumptions about how
our patients will respond to any change in financial assistance
from charitable organizations;
- the extent to which the ongoing implementation of healthcare
reform, or changes in or new legislation, regulations or guidance,
enforcement thereof or related litigation, and the extent to which
such developments result in a reduction in coverage or
reimbursement rates for our services, a reduction in the number of
patients enrolled in higher-paying commercial plans, or other
material impacts to our business;
- a reduction in government payment rates under the Medicare
End Stage Renal Disease program or other government-based programs
and the impact of the Medicare Advantage benchmark
structure;
- risks arising from potential and proposed federal and/or
state legislation, regulation, ballot, executive action or other
initiatives, including such initiatives related to healthcare
and/or labor matters;
- the impact of the changing political environment and related
developments on the current healthcare marketplace and on our
business, including with respect to the future of the Affordable
Care Act, the exchanges and many other core aspects of the current
health care marketplace;
- changes in pharmaceutical practice patterns, reimbursement
and payment policies and processes, or pharmaceutical pricing,
including with respect to calcimimetics;
- legal and compliance risks, such as our continued compliance
with complex government regulations and the provisions of our
current corporate integrity agreement;
- continued increased competition from dialysis providers and
others, and other potential marketplace changes;
- our ability to maintain contracts with physician medical
directors, changing affiliation models for physicians, and the
emergence of new models of care introduced by the government or
private sector that may erode our patient base and reimbursement
rates, such as accountable care organizations, independent practice
associations and integrated delivery systems;
- our ability to complete acquisitions, mergers or
dispositions that we might announce or be considering, on terms
favorable to us or at all, or to integrate and successfully operate
any business we may acquire or have acquired, or to successfully
expand our operations and services in markets outside the United States, or to businesses outside of
dialysis; and our ability to complete the proposed redemption of
our 5.750% Senior Notes due 2022 on the terms currently
contemplated or at all;
- noncompliance by us or our business associates with any
privacy or security laws or any security breach by us or a third
party involving the misappropriation, loss or other unauthorized
use or disclosure of confidential information;
- the variability of our cash flows; the risk that we may not
be able to generate sufficient cash in the future to service our
indebtedness or to fund our other liquidity needs; and the risk
that we may not be able to refinance our indebtedness as it becomes
due, on terms favorable to us or at all;
- factors that may impact our ability to repurchase stock
under our stock repurchase program (including the tender offer
described above) and the timing of any such stock
repurchases;
- risks arising from the use of accounting estimates,
judgments and interpretations in our financial statements;
- impairment of our goodwill, investments or other
assets;
- uncertainties related to our use of the proceeds from the
DMG sale transaction and other available funds, including external
financing and cash flow from operations, which may be or have been
used in ways that we cannot assure will improve our results of
operations or enhance the value of our common stock; and
- uncertainties associated with the other risk factors set
forth in our most recent quarterly report on Form 10-Q, and the
other risks and uncertainties discussed in any subsequent reports
that we file or furnish to the SEC from time to time.
The forward-looking statements should be considered in light
of these risks and uncertainties. All forward-looking statements in
this release are based solely on information available to us on the
date of this release. We undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of
changed circumstances, new information, future events or
otherwise.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/davita-announces-new-senior-secured-credit-agreement-300900086.html
SOURCE DaVita