UHS · 10-Q · 2026Q2 · Full report

Debt Refinancing and Liquidity

UNIVERSAL HEALTH SERVICES INC · 2026-08-07 · Importance 69 · Surprise 50 · No source text

At June 30, 2026, UHS had debt with a carrying value of approximately $4.9 billion and fair value of approximately $4.7 billion, compared with carrying and fair values of $4.8 billion and $4.6 billion at December 31, 2025. Debt represented approximately 39% of total capitalization, down from 40% at year-end 2025. The April 2026 credit amendment increased total borrowing capacity by $900 million, including a $1.5 billion revolving facility, a $1.455 billion term loan A, and a new $400 million delayed-draw term loan A expected to fund the Talkspace acquisition. As of June 30, 2026, revolving-credit availability was $1.272 billion, and UHS had $3.0 billion of senior secured notes, including $700 million due September 1, 2026.

Key facts

• We expect to finance capital expenditures, acquisitions, dividends and potential share repurchases using internally generated funds and additional funds including borrowings under the $1.5 billion revolving credit facility which had $1.272 billion available as of June 30, 2026; borrowings under the $400 million delayed draw term loan A expected to be drawn upon closing of Talkspace; refinancing the existing Credit Agreement including the $700 million potential additional borrowing capacity from the Twelfth Amendment; issuance of other debt; and/or issuance of equity. source
• In July 2026 we entered into the Twelfth Amendment adding a new $700 million delayed draw short term loan which, if utilized, would be funded on or prior to September 30, 2026 with maturity 364 days after initial funding. source
• In April 2026 we entered into the Eleventh Amendment which increased borrowing capacity by $900 million: (i) revolving credit increased by $200 million to $1.5 billion (from $1.3 billion); (ii) term loan A increased by $300 million to $1.455 billion (from $1.155 billion); and (iii) initiated a new $400 million delayed draw term loan A expected to be drawn upon closing of Talkspace. source
• After the Eleventh Amendment, term loan A had aggregate installment payments of $9.4 million on September 30, 2026, $16.9 million per quarter from December 31, 2026 through June 30, 2028, $18.8 million per quarter from September 30, 2028 through June 30, 2029, and an unpaid principal balance of $1.245 billion payable on September 26, 2029. source
• We generated $300 million of additional borrowings pursuant to our term loan A in the first six months of 2026 which increased it to $1.46 billion in April, 2026 (from $1.16 billion previously). source
• As of June 30, 2026 we had $1.272 billion of available borrowing capacity under the $1.5 billion revolving credit facility (net of $225 million outstanding borrowings and $3 million letters of credit) and $400 million of borrowing capacity under the delayed draw term loan A facility. source
• Interest on the 2026 Notes is payable on March 1st and September 1st until the maturity date of September 1, 2026. source
• Term loan A was increased by $300 million to $1.455 billion in April 2026 (with $1.448 billion outstanding as of June 30, 2026). source

Impact estimates