DVA · 10-Q · 2026Q2 · Full report

Interest Rate Environment

DAVITA INC. · 2026-08-04 · Importance 64 · Surprise 42 · In source text

DaVita entered into a June 8, 2026 Ninth Amendment that added $500 million to Term Loan B-2, using proceeds to repay part of its revolving-line balance; the transaction generated $2.035 million of debt extinguishment and modification costs. As of June 30, 2026, total debt principal was $10.848 billion, including SOFR-based Term Loan B-2 of $2.358 billion, Term Loan A-2 of $1.975 billion, and a $65 million revolving-line draw. Interest-rate caps covered all Term Loan B-2 and part of Term Loan A-2, while $832.910 million of Term Loan A-2 and the $65 million revolving balance remained exposed to SOFR volatility; the weighted-average effective rate was 5.43% on all debt and 5.76% on senior secured credit facilities.

Key facts

• Total notional amounts and per-contract maximum SOFR rates include a cap with initial notional $500,000 and SOFR maximum rate 4.50% executed 6/30/2024 effective through 12/31/2026 source
• Total notional coverage of interest rate cap agreements as of June 30, 2026: $3,500,000 source
• $13 million in cap premium fees for our 2025 forward interest rate cap agreements. source
• Debt expense for the six months ended June 30, 2026: ($295,387) source
• Weighted average strike rate of interest rate caps as of June 30, 2026: 4.32% (three months) and 4.46% (six months) presented in table source
• Total accumulated other comprehensive loss at June 30, 2026: ($58,551) with interest rate cap component ($8,691) and foreign currency translation adjustments ($49,860) source
• Weighted average effective interest rate for the six months ended June 30, 2026: 5.43% vs 5.73% prior year (decrease of 0.30%) source
• The Company’s fair value of interest rate cap agreements recorded as assets: $25,035 as of June 30, 2026 source

Impact estimates