Tenet Healthcare Corporation said on Wednesday it had secured a five year, $800-million revolving credit facility with a group of banks led by Citigroup and Bank of America.
The facility will be secured by patient accounts receivable at Tenetâ€™s acute care and specialty hospitals. Tenet said it expects the new facility to provide a flow of income in order to meet the company's anticipated operating needs.
This new, receivables-backed credit line should also give Tenet reasonable annual facility costs and less restrictive operating covenants. It would also free up $262.5 million of cash used to support previous letters of credit, thus improving our liquidity even further,â€ said Trevor Fetter, Tenetâ€™s president and chief executive officer.
According to a statement released by Tenet, the new facility is expected to include standard terms and conditions for a secured, asset-backed credit facility. The final terms of the agreement are scheduled to be completed and finalized by late October.