DVA · 10-Q · 2026Q2 · Full report
Interest Rate and Refinancing Exposure
DAVITA INC. · 2026-08-04 · Importance 52 · Surprise 42 · Contradicted
On July 7, 2026, DaVita entered into forward interest rate cap agreements with an aggregate notional amount of $750 million. The agreements cap exposure to SOFR variable-rate changes on specified portions of the company’s floating-rate debt. They are designated as cash-flow hedges, become effective December 29, 2028, and expire December 31, 2029.
Key facts
- On July 7, 2026 DaVita entered into forward interest rate cap agreements with aggregate notional amount of $750,000 that become effective December 29, 2028 and expire December 31, 2029 source
- The remaining $832,910 outstanding principal balance of Term Loan A-2 and $65,000 balance outstanding on the revolving line of credit are subject to SOFR-based interest rate volatility as of June 30, 2026 source
- The forward interest rate cap agreements entered July 7, 2026 are designated as cash flow hedges and changes in their fair values will be reported in other comprehensive income source
- From time to time, depending on market conditions, our capital requirements and the availability of financing, among other things, we may seek to refinance our existing debt and may incur additional indebtedness. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | -5.1% | The remaining $832,910 outstanding principal balance of Term Loan A-2 and $65,000 balance outstanding on the revolving line of credit are… |
| net_income | positive | committed | — | On July 7, 2026 DaVita entered into forward interest rate cap agreements with aggregate notional amount of $750,000 that become effective… |