Tenet Announces Amendment to its Credit Agreement

Rhea-AI Summary

Tenet Healthcare Corporation (NYSE: THC) announced an amendment to its senior secured revolving credit facility, effective March 16, 2022. The key changes include aggregate revolving commitments of up to $1.5 billion, extending the maturity date to March 16, 2027, and replacing LIBOR with Term SOFR as the reference interest rate. The credit facility is secured by a first-priority lien on accounts receivable and inventory and guaranteed by certain subsidiaries. This financial maneuver reflects Tenet’s strategic response to the evolving financial landscape amidst the ongoing challenges of the healthcare sector.

Positive

• Credit facility amended to provide for up to $1.5 billion in revolving commitments.
• Maturity extended to March 16, 2027.

Negative

• The amendment reflects potential liquidity challenges amid a complex financial environment.

DALLAS--(BUSINESS WIRE)-- Tenet Healthcare Corporation (NYSE: THC) today announced that it has entered into an amendment to its existing senior secured revolving credit facility. The amendment has an effective date of March 16, 2022 and amends certain provisions under the credit agreement to, among other things, (i) provide for aggregate revolving commitments not to exceed $1.5 billion, subject to borrowing availability, (ii) extend the maturity date to March 16, 2027 and (iii) replace LIBOR with Term SOFR and Daily Simple SOFR as the reference interest rate. The credit facility is guaranteed by certain of Tenet’s subsidiaries and secured by a first-priority lien on the accounts receivable and inventory owned by Tenet and its subsidiary guarantors.

Cautionary Statement

This release contains “forward-looking statements” - that is, statements that relate to future, not past, events. In this context, forward-looking statements often address Tenet’s expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,” “plan,” “predict,” “project,” “seek,” “see,” “target,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain, especially with regard to developments related to COVID-19. Particular uncertainties that could cause Tenet’s actual results to be materially different than those expressed in Tenet’s forward-looking statements include, but are not limited to, the impact of the COVID-19 pandemic and other factors disclosed under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended December 31, 2021, and other filings with the Securities and Exchange Commission.

About Tenet Healthcare

Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in Dallas. Through an expansive care network that includes United Surgical Partners International, we operate 60 hospitals and operate or have an ownership interest in approximately 550 other healthcare facilities, including surgical hospitals, ambulatory surgery centers, imaging centers and other care sites and clinics. We also operate Conifer Health Solutions, which provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients. Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve. For more information, please visit www.tenethealth.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220316005964/en/

Investor Contact:

469-893-2387

investorrelations@tenethealth.com

Media Contact:

Lesley Bogdanow

469-893-2640

mediarelations@tenethealth.com

Source: Tenet Healthcare Corporation

FAQ

What does the credit facility amendment mean for Tenet Healthcare (THC)?

The amendment allows Tenet Healthcare to access up to $1.5 billion in revolving commitments, extending financial flexibility.

When does the new maturity date for the credit facility end for THC?

The new maturity date is March 16, 2027.

What interest rate reference does Tenet Healthcare use after the amendment?

Tenet Healthcare has replaced LIBOR with Term SOFR and Daily Simple SOFR as the reference interest rates.

How does the credit amendment impact the financial stability of Tenet Healthcare (THC)?

While it provides additional liquidity, it may also indicate underlying financial challenges within the company.