Fitch Rates DaVita Inc.'s $400MM Senior Notes 'B'.NEW YORK -- Fitch Ratings has assigned a 'B' rating to DaVita Inc.'s (DaVita) $400 million 6.625% senior unsecured notes due 2013. Fitch's other ratings for DaVita are as follows: --Issuer Default Rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) 'B+'; --Bank Credit Facility 'BB/RR2'; --Senior Subordinated Notes 'B-/RR6'; --Senior Unsecured Notes 'B/RR5'. The Rating Outlook is Stable. The notes are part of the same series of notes as DaVita's $500 million 6.625% senior unsecured notes due 2013, issued in March 2005. Pricing on the new notes has been completed and the offering is expected to close on Feb. 23, 2007. Fitch expects DaVita to use the proceeds from the issuance to reduce amounts outstanding under the Term Loan portion of its senior secured credit facility. At Sept. 30, 2006, DaVita had approximately $279 million outstanding on its Term Loan A and $2,181 million outstanding on its Term Loan B. The company also had an undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely $253 million revolver with $49 million in letters of credit outstanding. The interest rates on the Term Loan A and Term Loan B were LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). +1.75% and LIBOR+2.00%, respectively. The company is currently seeking an amendment to its credit facility in order to obtain better pricing. DaVita's ratings reflect significant debt levels and an uncertain regulatory environment. At the same time, DaVita has demonstrated improved financial performance for the past several quarters. Leverage (total debt with equity credit/operating EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) has decreased to 4.49 times (x) for the latest 12 months (LTM LTM abbr. long-term memory ) ended Sept. 30, 2006 from 6.85x at the end of 2005. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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