Universal Health Services Adds $700M Delayed-Draw Term Loan

What Happened

• Universal Health Services, Inc. (UHS) filed an 8-K reporting a Twelfth Amendment to its credit agreement, effective July 20, 2026, that adds a new incremental delayed-draw tranche A term loan facility of up to $700 million (the “July 2026 Delayed Draw Term Loan”).
• The loan can be drawn from July 20, 2026 through September 30, 2026, will not amortize, and will mature 364 days after the date each advance is funded. UHS said proceeds, if drawn, are intended for general corporate purposes, including refinancing existing indebtedness and paying related fees and expenses.

Key Details

• Amount: up to $700,000,000 incremental delayed-draw term loan.
• Draw period: July 20, 2026 through September 30, 2026; maturity = 364 days after funding.
• Interest margin (initial): 0.125% for ABR loans; 1.125% for Term Benchmark Loans and RFR Loans (based on UHS’s Consolidated Net Leverage Ratio).
• Repayment: no scheduled amortization; full principal due at maturity; required prepayment in certain circumstances (e.g., incurrence of certain new debt or issuance of capital stock), subject to limited exceptions.
• Security: obligations under the Senior Secured Credit Facility are secured on an equal ratable basis with holders of UHS’s specified Senior Secured Notes under the Company’s Amended and Restated Collateral Agreement.
• Filing: Twelfth Amendment filed as Exhibit 10.1 to the Form 8‑K dated July 21, 2026.

Why It Matters

• This amendment gives UHS near-term access to up to $700M of committed liquidity that can be used to refinance debt or for other corporate needs, reducing short-term refinancing risk if drawn.
• If UHS draws the tranche, it will create a new direct financial obligation and increase the company’s secured indebtedness (on parity with existing secured notes), which is important for investors monitoring leverage and collateral claims.
• The short maturity (364 days) and prepayment triggers mean this is a temporary, flexible financing option rather than long-term debt; investors should watch for whether and when UHS draws the facility and how proceeds are used.