DAVITA INC. 8-K

What Happened

• DaVita Inc. announced on June 8, 2026 that it entered a Ninth Amendment to its August 12, 2019 Credit Agreement to add an incremental $500 million to its senior secured Term B facility (the Tranche B‑2 Term Loans), which mature in May 2031. The new loans may bear interest at the Base Rate plus 75 bps or Term SOFR plus 175 bps, at DaVita’s option. Proceeds will be used to repay part of its senior secured revolving facility (maturing November 2030), pay related fees and expenses, and for general corporate purposes.
• DaVita also reported results from its virtual 2026 Annual Meeting held June 4, 2026: all nine director nominees were elected, KPMG LLP was ratified as independent auditor, and the company’s executive compensation was approved in an advisory vote.

Key Details

• Incremental borrowing: $500,000,000 added to Tranche B‑2 Term Facility (Ninth Amendment dated June 8, 2026).
• Interest options and spreads: Base Rate + 75 basis points (bps) or Term SOFR + 175 bps; Base Rate is defined relative to Federal Funds +50 bps, the Wall Street Journal prime, or 1‑month Term SOFR +100 bps (floor at 0%).
• Use of proceeds: repayment of portion of revolving credit facility (Nov 2030 maturity), fees/expenses related to the amendment, and general corporate purposes.
• Annual Meeting (June 4, 2026): ~59,865,902 shares voted (~91% of outstanding as of record date Apr 9, 2026). All nine nominees elected (each received ~52.2M votes for; broker non‑votes ~7.31M). KPMG ratified (58,286,637 for, 1,534,241 against). Advisory approval of named executive officer compensation (51,716,491 for, 776,849 against).

Why It Matters

• The Ninth Amendment creates a direct financial obligation and increases DaVita’s funded debt by $500M, while providing cash to reduce revolver usage and support general corporate needs. Investors should note the interest rate mechanics (Base Rate vs. Term SOFR and associated margins) because the company’s choice affects future interest expense.
• The annual meeting results confirm shareholder support for the board, the auditor, and executive pay, maintaining governance continuity with no reported management changes.