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DaVita offers notes to pay down current debt


By Rachel Landen
Posted: June 11, 2014 - 2:45 pm ET
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DaVita HealthCare Partners announced Tuesday that it will offer $1.75 billion in senior notes due 2024, using proceeds to pay down current debt.

In a prospectus filed with the Securities and Exchange Commission, Denver-based DaVita offered the 5.125% senior notes, pursuant to a registration statement also filed with the SEC. According to the filings, DaVita plans to use the net proceeds from the offering to repay a portion of the company's term loans under current senior secured credit facilities. As well, the proceeds will be used to cover fees and expenses related to this latest offering.

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DaVita's latest quarterly filing for the period ended March 31 showed long-term debt and liabilities of $8.48 billion on total assets of $17.4 billion.

Per the final term sheet filed Tuesday, DaVita may redeem up to 35% of the notes any time prior to July 15, 2017. And any time on or after July 15, 2019, DaVita has the option to redeem some or all of the notes outstanding, plus accrued and unpaid interest.

Wells Fargo Securities; Barclays Capital; Merrill Lynch, Pierce, Fenner & Smith; Credit Suisse Securities; Goldman, Sachs & Co.; J.P. Morgan Securities; Morgan Stanley & Co.; and SunTrust Robinson Humphrey are acting as joint book-running managers for the offering.

Follow Rachel Landen on Twitter: @MHrlanden


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