Narrative
Full Description
Project narrative
On May 28, 2021, financial close was reached on a deal in which a syndicate of 15 banks — including the New York Branch of Agricultural Bank of China (ABC) — entered into a $500,000,000 USD delayed draw term loan agreement with Humana Inc., a Louisville, Kentucky-based health insurance and managed care company. The maturity of the loan was 3 years and the interest rate was LIBOR plus an applicable margin. The use of proceeds was to finance the acquisition of the remaining 60% stake of Kindred at Home (KAH), a Louisville, Kentucky-based provider of home health, hospice, and personal care services to over 550,000 patients annually and employs 43,000 caregivers, for $5.7 billion USD from TPG Capital (TPG) and Welsh, Carson, Anderson & Stowe (WCAS). The acquisition was expected to be completed by the third quarter of 2021. The acquisition was completed on August 17, 2021. In addition to ABC, the following lenders also participated: JPMorgan Chase Bank, N.A., UMB Bank, N.A., Truist Bank, The Bank of Nova Scotia, Bank of America, N.A., Citibank, N.A., The Toronto-Dominion Bank (New York Branch), Fifth Third Bank, PNC Bank, National Association, Sumitomo Mitsui Banking Corporation, Regions Bank, The Bank of New York Mellon, Wells Fargo Bank, N.A., and U.S. Bank, National Association.
Staff comments
1. The entirety of the 2021 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/49071/000119312521182941/d211636dex103.htm. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/h2asbe7rw9ssvxxp8nt0k/Source_ID_215705.pdf?rlkey=r762jqkpzu6o2t0rpothvy23p&st=s4wvmy20&dl=0 2. Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. As of 2021, it was the third-largest health insurance provider in the United States, offering Medicare Advantage plans, Medicaid, and other group insurance products. Kindred at Home, now known as Gentiva, was a home health, hospice, and personal care provider that was acquired by Humana in 2021 and later had its hospice and personal care segments divested to Clayton, Dubilier & Rice in 2022. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in May 2021 and an applicable margin based on credit ratings (BBB+ or 1.125%). 4. The individual contributions of the 15 lenders to this $500 million USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of Agricultural Bank of China by assuming that each lender contributed an equal amount ($33,333,333.33 USD) to the loan syndicate.