U.S. Physical Therapy Enters Interest Rate Swap to Fix Term Loan Rate

What Happened
U.S. Physical Therapy, Inc. announced on Sept. 22, 2026 that it entered into a 45-month forward-starting interest rate swap with Bank of America, N.A. The swap has an initial notional amount of $170.6 million and is designed to fix the variable component of the interest rate on the company's term loan under its Fourth Amended and Restated Credit Agreement. The swap becomes effective June 30, 2027 (when the company’s existing swap expires) and terminates on April 14, 2031.

Key Details

• Notional amount: $170.6 million (amortizes in line with the term loan schedule).
• Fixed rate payable by the company: 4.578% per annum; company will receive variable payments tied to one‑month SOFR.
• Effective date: June 30, 2027 (forward-starting); swap entered into on Sept. 22, 2026.
• Counterparty: Bank of America, which also serves as Administrative Agent and lender under the Credit Agreement; the swap is governed by the parties’ ISDA Master Agreement.

Why It Matters
This swap locks in a known fixed interest cost for the variable portion of the company’s term loan, reducing U.S. Physical Therapy’s exposure to rising short-term rates and making interest expense and cash flows more predictable through April 2031. For investors, that can lower interest-rate risk on leverage metrics (e.g., interest expense and free cash flow variability), while leaving the company subject to the fixed payment obligation at 4.578% annually. The filing is a disclosure of a material financing-related hedging arrangement rather than an operational or earnings announcement.