LifePoint Health entered into a new senior secured credit agreement with Citibank as administrative agent, providing for a $700 million senior secured term loan facility and a $600 million senior secured revolving credit facility, of which up to a maximum of $100 million may be utilized for letters of credit and up to a maximum amount of $50 million may be utilized for swingline loans.

The senior credit agreement matures in June 2021, at which time all principal amounts outstanding under the senior credit agreement will be due and payable provided that the term facility will amortize in quarterly installments in an amount equal to 2.5% per annum for each of the first, second and third years and 5.0% per annum for the fourth year and first three quarters of the fifth year with the balance due (or payable) at maturity.

The credit agreement may, subject to certain conditions and to receipt of commitments from new or existing lenders, be increased up to the sum of $800 million and (an amount such that, after giving pro forma effect to such increase and to the use of proceeds therefrom, the company’s secured leverage ratio does not exceed 3.50:1.00; provided that no lender is obligated to participate in any such increase.

Proceeds of the term facility were used to refinance in full the company’s existing credit agreement dated as of July 24, and to pay related fees and expenses, and thereafter, for general corporate purposes. The proceeds of the revolving facility may be used for general corporate purposes.

Brentwood, TN-based LifePoint Health provides healthcare services in growing regions, rural communities and small towns.