Universal Health Services, Inc. announced that it has completed an amendment to its credit agreement dated November 15, 2010 as amended on March 15, 2011. The amendment provides for a new $900 million term loan A (term loan A-2) with a final maturity date of August 15, 2016 and extends the maturity date on the majority of the revolving credit facility and existing term loan A by nine months to mature on August 15, 2016. The amendment also provides for increased flexibility for refinancing and certain other modifications.

The company used $700 million of the proceeds from the new term loan A-2 to repay its higher priced term loan B facility. Current pricing under the new term loan A-2 is 100 basis points lower than the term loan B facility and does not include a LIBOR floor whereas the term loan B facility has a 1% LIBOR floor. The remainder of the new term loan A-2 was used to pay transaction related fees and expenses and to repay other floating rate debt.

J.P. Morgan Securities and Merrill Lynch, Pierce, Fenner & Smith served as the joint lead arrangers and bookrunners for the new facilities.

Universal Health Services, Inc. is a hospital company, operating, through its subsidiaries, acute care hospitals, behavioral health facilities, and ambulatory centers throughout the United States, Puerto Rico and the U.S. Virgin Islands.