DENVER, April 14, 2015 /PRNewswire/ -- DaVita
HealthCare Partners Inc. (NYSE: DVA) (the "Company") today
announced that it intends to offer, subject to market and other
conditions, $1.25 billion principal
amount of senior notes due 2025 (the "Senior Notes").
The Company intends to use the net proceeds from the offering to
repurchase or redeem its outstanding 6 5/8% Senior Notes due 2020
(the "Outstanding Notes"), to pay related transaction fees and
expenses, and for general corporate purposes, which may include
future acquisitions and share repurchases. Concurrently with this
offering, the Company has commenced a cash tender offer to purchase
the Outstanding Notes. The offering is not conditioned upon the
consummation of the tender offer for the Outstanding Notes. The
Senior Notes will be guaranteed by certain of the Company's
domestic subsidiaries.
The Senior Notes are being offered pursuant to an effective
registration statement filed with the Securities and Exchange
Commission. BofA Merrill Lynch, Barclays, Credit Suisse, Goldman,
Sachs & Co., J.P. Morgan, Morgan Stanley, SunTrust Robinson
Humphrey and Wells Fargo Securities are acting as joint
book-running managers for the offering. Credit Agricole CIB, MUFG,
Scotiabank and SMBC Nikko are acting as co-managers for the
offering.
The offering of Senior Notes is being made only by means of the
prospectus supplement and accompanying prospectus. You may obtain
copies of the prospectus supplement and accompanying prospectus
from (i) BofA Merrill Lynch at 222 Broadway, New York, NY 10038, Attention: Prospectus
Department, or email: dg.prospectus_requests@baml.com, (ii)
Barclays Capital Inc. at (888) 603-5847 or Barclaysprospectus@
broadridge.com, (iii) Credit Suisse Securities (USA) LLC at (800) 221-1037 or
Newyork.prospectus@credit-suisse.com, (iv) Goldman, Sachs & Co.
at (866) 471-2526 or prospectus-ny@ny.email.gs.com, (v) J.P. Morgan
Securities LLC at (800) 245-8812, (vi) Morgan Stanley & Co. LLC
at (866) 718-1649, (vii) SunTrust Robinson Humphrey, Inc. at (404)
926-5052 and (viii) Wells Fargo Securities, LLC at (800) 326-5897
or cmclientsupport@wellsfargo.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About DaVita HealthCare Partners
DaVita HealthCare Partners Inc., a Fortune 500® company, is the
parent company of DaVita Kidney Care
and HealthCare Partners ("HCP"). DaVita
Kidney Care is a leading provider of kidney care in
the United States, delivering
dialysis services to patients with chronic kidney failure and end
stage renal disease. As of December 31,
2014, DaVita Kidney Care
operated or provided administrative services at 2,179 outpatient
dialysis centers located in the United
States serving approximately 173,000 patients. The company
also operated or provided administrative services to a total of 91
outpatient dialysis centers located in 10 countries outside
the United States. HealthCare
Partners manages and operates medical groups and affiliated
physician networks in Arizona,
California, Nevada, New
Mexico, and Florida. As of
December 31, 2014, HCP provided
integrated care management for approximately 837,000
patients.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the federal securities laws, including statements
related to the anticipated offering and the intended use of
proceeds from such offering. Factors that could impact these
statements include the uncertainties associated with the risk
factors set forth in our SEC filings, including our annual report
on Form 10-K for the year ended December 31,
2014, our subsequent quarterly and annual reports, our
current reports on Form 8-K and the registration statement filed on
Form S-3 and the related prospectus supplement filed in connection
with the offering of the Senior Notes. The forward-looking
statements should be considered in light of these risks and
uncertainties.
These risks and uncertainties include, but are not limited
to, and are qualified in their entirety by reference to the full
text of those risk factors in our SEC filings relating to:
- risks resulting from the concentration of profits
generated by higher-paying commercial payor plans for which there
is continued downward pressure on average realized payment rates,
and a reduction in the number of patients under such plans, which
may result in the loss of revenues or patients,
- a reduction in government payment rates under the Medicare
End Stage Renal Disease program or other government-based
programs,
- the impact of the Center for Medicare and Medicaid Services
(CMS) 2015 Medicare Advantage benchmark structure,
- risks arising from potential federal and/or state
legislation that could have an adverse effect on our operations and
profitability,
- changes in pharmaceutical or anemia management practice
patterns, payment policies, or pharmaceutical
pricing,
- legal compliance risks, including our continued compliance
with complex government regulations, compliance with the provisions
of our current corporate integrity agreement, and current or
potential investigations by various government entities and related
government or private-party proceedings, and restrictions on our
business and operations required by a corporate integrity agreement
and other settlement terms, and the financial impact
thereof,
- continued increased competition from large and medium-sized
dialysis providers that compete directly with us,
- our ability to maintain contracts with physician medical
directors, changing affiliation models for physicians, and the
emergence of new models of care introduced by the government or
private sector, that may erode our patient base and reimbursement
rates, such as accountable care organizations, independent practice
associations and integrated delivery systems, or to businesses
outside of dialysis and HCP's business,
- our ability to complete acquisitions, mergers or
dispositions that we might be considering or announce, or to
integrate and successfully operate any business we may acquire or
have acquired, including HCP, or to expand our operations and
services to markets outside the United
States,
- variability of our cash flows,
- the risk that we might invest material amounts of capital
and incur significant costs in connection with the growth and
development of our international operations, yet we might not be
able to operate them profitably anytime soon, if at all,
- risks arising from the use of accounting estimates,
judgments and interpretations in our financial statements,
- loss of key HCP employees, potential disruption from
the HCP transaction making it more difficult to maintain business
and operational relationships with customers, partners, associated
physicians and physician groups, hospitals and others,
- the risk that laws regulating the corporate practice of
medicine could restrict the manner in which HCP conducts its
business,
- the risk that the cost of providing services under HCP's
agreements may exceed our compensation,
- the risk that reductions in reimbursement rates, including
Medicare Advantage rates, and future regulations may negatively
impact HCP's business, revenue and profitability,
- the risk that HCP may not be able to successfully establish
a presence in new geographic regions or successfully address
competitive threats that could reduce its profitability,
- the risk that a disruption in HCP's healthcare provider
networks could have an adverse effect on HCP's business operations
and profitability,
- the risk that reductions in the quality ratings of health
maintenance organization plan customers of HCP could have an
adverse effect on HCP's business, and
- the risk that health plans that acquire health maintenance
organizations may not be willing to contract with HCP or may be
willing to contract only on less favorable terms.
We base our forward-looking statements on information
currently available to us at the time of this release, and we
undertake no obligation to update or revise any forward-looking
statements, whether as a result of changes in underlying factors,
new information, future events or otherwise.
Contact: Jim Gustafson
Investor Relations
DaVita HealthCare Partners Inc.
(310) 536-2585
Logo -
http://photos.prnewswire.com/prnh/20140318/DC85712LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/davita-healthcare-partners-inc-announces-offering-of-125-billion-senior-notes-300065458.html
SOURCE DaVita HealthCare Partners Inc.