UHS · 10-Q · 2026Q3 · Full report

Interest Rate and Refinancing Exposure

UNIVERSAL HEALTH SERVICES INC · 2026-11-06 · Importance 36 · Surprise 40

Average borrowings under UHS’s revolving credit, term loan A, delayed draw term loan A, and senior notes increased to $5.14 billion in third-quarter 2026 from $4.46 billion a year earlier, while the average effective rate increased to 4.25% from 4.09%. For the first nine months of 2026, average borrowings were $4.78 billion versus $4.36 billion, while the average effective rate was 4.06% versus 4.09%. UHS also issued $600 million of 5.50% senior notes due 2031 and $500 million of 6.00% senior notes due 2036 in August 2026, and repaid $700 million of 1.65% notes at maturity on September 1, 2026.

Key facts

• Rising interest rates in recent years significantly increased UNIVERSAL HEALTH SERVICES INC’s interest expense, reducing free cash flow and its ability to access capital markets on favorable terms. source