HCA Healthcare Enters New Credit Agreement, Terminates Senior Secured Credit Facilities

HCA Healthcare Inc. (NYSE:HCA), a leading operator of hospitals and surgery centers in the U.S., recently entered into a new credit agreement while simultaneously terminating its senior secured credit facilities.

The new credit agreement was signed on February 20, 2025. HCA Inc., a subsidiary of HCA Healthcare and the designated borrower, terminated outstanding obligations under two credit agreements from 2006 and 2011, repaying all commitments.

The previous Cash Flow credit facility had allotted a $3.5 billion senior secured revolving credit facility and a senior secured term loan A facility with $1.238 billion outstanding as of December 31, 2024. The ABL credit facility had allowed for a $4.5 billion senior secured revolving credit facility. All outstanding borrowings under these facilities were prepaid prior to their termination.

The new credit agreement provides for $8 billion of senior unsecured revolving credit commitments with a term of five years, intended for general corporate use. The termination of the senior secured credit facilities was a prerequisite for the signing of the new credit agreement.

The new agreement includes customary covenants for credit facilities of this nature, such as limitations on liens, restrictions on the incurring of indebtedness by subsidiaries of the borrower, and certain fundamental changes. Unlike the previous facilities, the new senior unsecured credit facility is not guaranteed by HCA Healthcare or any subsidiary of the borrower.

Additionally, the agreement stipulates a fluctuating interest rate per annum based on the borrower’s option of the alternate base rate or Term Secured Overnight Financing Rate (Term SOFR), plus an applicable margin calculated based on the borrower’s credit rating from time to time, plus a credit spread adjustment.

The agreement also allows sub-facilities for borrowings in euros and pound sterling, letters of credit, and swingline loans, similar to the provisions in the former senior secured credit facilities.

To meet the outstanding obligations under the senior secured credit facilities, the borrower borrowed under the new senior unsecured credit facility. The full terms of the new credit agreement are defined in Exhibit 10.1 of the 8-K SEC Filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read HCA Healthcare’s 8K filing here.

About HCA Healthcare

HCA Healthcare, Inc, through its subsidiaries, owns and operates hospitals and related healthcare entities in the United States. It operates general and acute care hospitals that offers medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic, and emergency services; and outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy.