DENVER, Aug. 8, 2024
/PRNewswire/ -- DaVita Inc. (NYSE: DVA) ("DaVita") announced
today the pricing of its previously announced private offering (the
"offering") of $1.0 billion aggregate
principal amount of its 6.875% senior notes due 2032 (the "2032
notes"). The 2032 notes were priced at 100.000% of their face
amount to yield a 6.875% coupon. The offering is expected to close
on August 13, 2024, subject to
satisfaction of customary closing conditions.
DaVita intends to use the net proceeds from the offering to (i)
repay a portion of its outstanding Term Loan B-1 facility
borrowings maturing in 2026 and a portion of its outstanding
revolving credit facility borrowings, in each case, together with
related accrued and unpaid interest thereon, (ii) pay any costs,
fees and expenses in connection with the foregoing, and (iii) if
any proceeds remain, for general corporate purposes, including,
without limitation, for repurchases of its capital stock, working
capital and capital expenditures.
The 2032 notes were offered only to persons reasonably believed
to be qualified institutional buyers pursuant to Rule 144A under
the Securities Act of 1933, as amended (the "Securities Act"), and
to certain non-U.S. persons in transactions outside the United States in compliance with
Regulation S under the Securities Act. The offer and sale of the
2032 notes have not been and will not be registered under the
Securities Act or the securities laws of any other jurisdiction,
and may not be offered or sold in the
United States absent registration or an applicable exemption
from the registration requirements.
This release does not constitute an offer to sell or the
solicitation of an offer to buy the 2032 notes, nor will there be
any sale of the 2032 notes in any state or other jurisdiction in
which such offer, solicitation or sale would be unlawful.
About DaVita
DaVita (NYSE: DVA) is a health care provider focused on
transforming care delivery to improve quality of life for patients
globally. The company is one of the largest providers of kidney
care services in the U.S. and has been a leader in clinical quality
and innovation for more than 20 years. DaVita cares for patients at
every stage and setting along their kidney health journey—from
slowing the progression of kidney disease to helping to support
transplantation, from acute hospital care to dialysis at home.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of
1995 ("PSLRA") and the federal securities laws. All 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"
provided by the PSLRA. Without limiting the foregoing, statements
including the words "expect," "intend," "will," "could," "plan,"
"anticipate," "believe" and similar expressions are intended to
identify forward-looking statements. These forward looking
statements include, but are not limited to, expectations regarding
the offering, the anticipated closing date thereof and the use of
the net proceeds therefrom. 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: current macroeconomic and marketplace conditions,
including without limitation, the impact of global events and
political or governmental volatility; the impact of the domestic
political environment and related developments on the current
healthcare marketplace and on our business; the continuing impact
of the COVID-19 pandemic on our operations, reputation, financial
condition and the chronic kidney disease population and our patient
population; the potential impact of new or potential entrants in
the dialysis and pre-dialysis marketplace and potential impact of
innovative technologies, drugs, or other treatments on our patients
and industry; supply chain challenges and disruptions, including
without limitation with respect to certain of our equipment and
clinical supplies; elevated teammate turnover or labor costs; the
impact of continued increased competition from dialysis providers
and others; and our ability to respond to challenging U.S. and
global economic and marketplace conditions, including, among other
things, our ability to successfully identify cost saving
opportunities and to invest in and implement cost saving
initiatives; the concentration of profits generated by
higher-paying commercial payor plans for which there is continued
downward pressure on average realized payment rates; a reduction in
the number or percentage of our patients under commercial plans,
including, without limitation, as a result of continuing
legislative efforts to restrict or prohibit the use and/or
availability of charitable premium assistance, or as a result of
payor's implementing restrictive plan designs; risks arising from
potential changes in or new laws, regulations or requirements
applicable to us, including, without limitation, those related to
healthcare, antitrust matters, including, among others,
non-competes and other restrictive covenants, and acquisition,
merger, joint venture or similar transactions and/or labor matters,
and potential impacts of changes in enforcement thereof or related
litigation impacting, among other things, coverage or reimbursement
rates for our services or the number of patients enrolled in or
that select higher- paying commercial plans, and the risk that we
make incorrect assumptions about how our patients will respond to
any such developments; our ability to attract, retain and motivate
teammates and our ability to manage operating cost increases or
productivity decreases whether due to union organizing activities,
legislative or other changes, demand for labor, volatility
and uncertainty in the labor market, the current challenging
and highly competitive labor market conditions, or other reasons;
our ability to successfully implement our strategies with respect
to integrated kidney care and value-based care initiatives and home
based dialysis in the desired time frame and in a complex, dynamic
and highly regulated environment; a reduction in government payment
rates under the Medicare End Stage Renal Disease program, state
Medicaid or other government-based programs and the impact of the
Medicare Advantage benchmark structure; noncompliance by us or our
business associates with any privacy or security laws or any
security breach by us or a third party, such as the
recent cyberattack on Change Healthcare ("CHC"), including,
among other things, any such non-compliance or breach involving the
misappropriation, loss or other unauthorized use or disclosure of
confidential information; legal and compliance risks, such as
compliance with complex, and at times, evolving government
regulations and requirements, and with additional laws that may
apply to our operations as we expand geographically or enter into
new lines of business; changes in pharmaceutical practice patterns,
reimbursement and payment policies and processes, or pharmaceutical
pricing, including with respect to oral phosphate binders, among
other things; our reliance on significant suppliers, service
providers and other third party vendors to provide key support to
our business operations and enable our provision of services to
patients, such as, among others, CHC and suppliers of certain
pharmaceuticals or critical clinical products; our ability to
develop and maintain relationships with physicians and hospitals,
changing affiliation models for physicians, and the emergence of
new models of care or other initiatives that, among other things,
may erode our patient base and impact reimbursement rates; our
ability to complete and successfully integrate and operate
acquisitions, mergers, dispositions, joint ventures or other
strategic transactions on terms favorable to us or at all; and our
ability to successfully expand our operations and services in
markets outside the United States,
or to businesses or products outside of dialysis services; the
variability of our cash flows, including, without limitation, any
extended billing or collections cycles including, without
limitation, due to defects or operational issues in our billing
systems or in the billing systems or services of third parties on
which we rely, such as the operational issues at CHC resulting from
a recent cyberattack; the risk that we may not be able to generate
or access 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 and the timing
of any such stock repurchases, as well as any use by us of a
considerable amount of available funds to repurchase stock; our
aspirations, goals and disclosures related to environmental, social
and governance ("ESG") matters, including, among other things,
evolving regulatory requirements affecting ESG standards,
measurements and reporting requirements; and the other risk
factors, trends and uncertainties set forth in our Annual Report on
Form 10-K for the year ended December 31,
2023 and Quarterly Reports on Form 10-Q for the periods
ended March 31, 2024 and June 30, 2024 and the other risks and
uncertainties discussed in any subsequent reports that we file or
furnish with the U.S. Securities and Exchange Commission 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,
except as may be required by law.
Contact Information
Investors:
IR@davita.com
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SOURCE DaVita