UNIVERSAL HEALTH SERVICES INC 8-K

What Happened
Universal Health Services, Inc. (UHS) filed an 8‑K reporting an Eleventh Amendment to its existing credit agreement (effective April 22, 2026) that adds three incremental facilities under its Senior Secured Credit Facility and updates guarantor and collateral arrangements. The amendment was entered with multiple lenders and JPMorgan Chase Bank, N.A. as administrative agent. UHS also entered supplemental indentures (with U.S. Bank Trust Company, N.A. as trustee) to add additional subsidiary guarantors to several outstanding indentures governing its senior secured notes.

Key Details

• Total new capacity added: up to $900 million composed of:
  • $200 million incremental revolving loan (available April 22, 2026 through Sept 26, 2029);
  • $300 million incremental Term A loan (matures Sept 26, 2029);
  • $400 million incremental delayed‑draw Term A loan (matures Sept 26, 2029; non‑amortizing).
• Term loan amortization: first eight quarters starting Sept 30, 2026 — quarterly payments equal to 0.625% of original principal; thereafter quarterly payments equal to 1.25% of original principal; remaining balance due at maturity.
• Pricing: initial margins tied to UHS’s Consolidated Net Leverage Ratio — initially 0.25% for ABR loans and 1.25% for Term Benchmark/RFR loans; the amendment removes a prior 0.10% credit spread adjustment.
• Use of proceeds: UHS intends to use amounts borrowed under the 2026 Delayed Draw Term Loan to fund its previously announced acquisition of Talkspace, Inc.
• Security and guarantors: obligations under the Senior Secured Credit Facility are secured on an equal, ratable basis with holders of certain UHS senior secured notes (notably the 1.650% due 2026, 2.650% due 2030, 2.650% due 2032, 4.625% due 2029, and 5.050% due 2034). Supplemental indentures added additional Subsidiary Guarantors under the relevant indentures.

Why It Matters
This amendment increases UHS’s committed borrowing capacity by up to $900M and refinances/adjusts pricing and guarantor coverage, giving the company more flexibility to fund strategic uses — specifically the Talkspace acquisition. For investors, the change affects UHS’s debt structure and collateral picture: new incremental debt is secured on parity with certain existing secured notes, and additional subsidiaries now guarantee both the credit facility and specified note indentures. These are material corporate finance changes that can affect the company’s leverage, liquidity and creditor priorities — factors investors watch when assessing credit risk and capital allocation.