AmSurg executives have struck a deal with their banks to cut the interest rate on their revolving line of credit by 25 to 50 basis points and to extend its maturity date by a year to mid-2018. As of March 31, Burton Hills-based AmSurg had $267 million outstanding on the $475 million line, which carried an average interest rate of 2.5 percent in 2012. Last June, AmSurg also negotiated a 25 basis point cut.
HCA executives last week negotiated a deal with their banks to lower the interest rate on a $726 million term loan. The newly reworked loan will still mature in early 2016. The move comes a month after HCA, which has a total long-term debt load of more than $27 billion, completed a similar transaction on a much larger loan.
Bloomberg reported Thursday afternoon that HCA Holdings executives are hitting up the banking world for a $2 billion loan that would refinance some of their existing debt. The move, wrote Sridhar Natarajan, comes after the nation's largest for-profit hospital operator reworked the interest rate on its $2.37 billion term loan maturing in 2018.
Nashville-based HCA (Ticker: HCA) has two $2 billion loans on its books: One is a senior secured term loan maturing at the end of March 2017, the other a senior secured revolving credit facility maturing in November 2016 that was undrawn at the end of 2012. The company finished last year with almost $29 billion of long-term debt on its books.
If recent corporate finance history is any guide, look for HCA to land more than $2 billion. In the past few years, the company has repeatedly upsized debt sales.
Ryman Hospitality Properties has wrapped up the big refinancing that increases its main debt facility to $1 billion from $925 million and pushes its maturity from August 2015 to April 2017. The new package has more revolving debt — $700 million versus $525 million — and lowers its rate by 25 basis points.
“This refinancing of our bank credit facility, coupled with the recent completion of our senior notes offering, further strengthens our balance sheet and enhances our flexibility to take advantage of strategic growth opportunities moving forward,” said Chairman, President and CEO Colin Reed. “Given the extremely attractive rates at which we were able to complete these transactions, we are confident that the timing was right and that they are in long-term best interest of our Company and our shareholders.”
Bankers have priced the $1.3 billion in new notes being issued by Dollar General. The company's new 2018 debt has been priced at 1.875 percent while the 2023 notes have an interest rate of 3.25 percent. The $1.9 billion in senior secured term loans being paid off carried an interest rate of 3 percent as of Feb. 1, the company's asset-based lending facility's rate was a little lower.