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Long-Term Debt | 12 Months Ended
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Dec. 31, 2017
Debt Disclosure [Abstract] |
Long-Term Debt | 4) LONG-TERM DEBT A summary of long-term debt follows:
|  | December 31, |
|  | 2017 |  |  | 2016 |
|  | (amounts in thousands) |
Long-term debt: |  |  |  |  |  |  |  |
Notes payable and Mortgages payable (including obligations under capitalized leases of $21,780 in 2017 and $23,446 in 2016) and term loans with varying maturities through 2027; weighted average interest rates of 9.1% in 2017 and 8.9% in 2016 (see Note 7 regarding capitalized leases) |  | $ | 22,794 |  |  | $ | 25,246 |
Revolving credit and on-demand credit facility |  |  | 438,100 |  |  |  | 469,700 |
Term Loan A, net of unamortized discount of $708 in 2017 and $1,151 in 2016 |  |  | 1,774,607 |  |  |  | 1,862,915 |
Accounts receivable securitization program |  |  | 419,500 |  |  |  | 398,700 |
3.75% Senior Secured Notes due 2019, net of unamortized discount of $69 in 2017 and $112 in 2016 |  |  | 299,931 |  |  |  | 299,888 |
4.75% Senior Secured Notes due 2022, including unamortized premium of $4,430 in 2017 and $5,400 in 2016 and net of unamortized discount of $124 in 2017 and $150 in 2016 |  |  | 704,306 |  |  |  | 705,250 |
5.00% Senior Secured Notes due 2026 |  |  | 400,000 |  |  |  | 400,000 |
Total debt before unamortized financing costs |  |  | 4,059,238 |  |  |  | 4,161,699 |
Less-Unamortized financing costs |  |  | (19,229 | ) |  |  | (25,574 | )
Total debt after unamortized financing costs |  |  | 4,040,009 |  |  |  | 4,136,125 |
Less-Amounts due within one year (net of unamortized financing costs) |  |  | (545,619 | ) |  |  | (105,895 | )
Long-term debt |  | $ | 3,494,390 |  |  | $ | 4,030,230 |
On June 7, 2016, we entered into a Fifth Amendment (the “Fifth Amendment”) to our credit agreement dated as of November 15, 2010, as amended on March 15, 2011, September 21, 2012, May 16, 2013 and August 7, 2014, among UHS, as borrower, the several banks and other financial institutions from time to time parties thereto, as lenders (“Credit Agreement”). The Fifth Amendment increased the size of the term loan A facility by $200 million and those proceeds were utilized to repay outstanding borrowings under the revolving credit facility of the Credit Agreement. The Credit Agreement, as amended, which is scheduled to mature in August, 2019, consists of: (i) an $800 million revolving credit facility ($403 million of borrowings outstanding as of December 31, 2017), and; (ii) a term loan A facility with $1.775 billion of borrowings outstanding as of December 31, 2017. Borrowings under the Credit Agreement bear interest at either (1) the ABR rate which is defined as the rate per annum equal to, at our election: the greatest of (a) the lender’s prime rate, (b) the weighted average of the federal funds rate, plus 0.5% and (c) one month LIBOR rate plus 1%, in each case, plus an applicable margin based upon our consolidated leverage ratio at the end of each quarter ranging from 0.50% to 1.25% for revolving credit and term loan-A borrowings, or (2) the one, two, three or six month LIBOR rate (at our election), plus an applicable margin based upon our consolidated leverage ratio at the end of each quarter ranging from 1.50% to 2.25% for revolving credit and term loan-A borrowings. As of December 31, 2017, the applicable margins were 0.50% for ABR-based loans and 1.50% for LIBOR-based loans under the revolving credit and term loan-A facilities. As of December 31, 2017, we had $403 million of borrowings outstanding pursuant to the terms of our $800 million revolving credit facility and we had $329 million of available borrowing capacity net of $33 million of outstanding letters of credit and $35 million of outstanding borrowings pursuant to a short-term, on-demand credit facility. The revolving credit facility includes a $125 million sub-limit for letters of credit. The Credit Agreement is collateralized by certain assets of the Company (which generally excludes asset classes such as substantially all of the patient-related accounts receivable of our acute care hospitals, certain real estate assets and assets held in joint-ventures with third-parties) and our material subsidiaries and guaranteed by our material subsidiaries. Pursuant to the terms of the Credit Agreement, term loan-A installment payments of approximately $22 million per quarter commenced during the fourth quarter of 2016 and are scheduled through June, 2019. Previously, approximately $11 million of quarterly installment payments were made from the fourth quarter of 2014 through the third quarter of 2016. In July, 2017, we amended our accounts receivable securitization program (“Securitization”) with a group of conduit lenders and liquidity banks to increase the borrowing capacity to $440 million from $400 million previously. Pursuant to the terms of our Securitization program, on which the scheduled maturity date of December, 2018 remained unchanged, substantially all of the patient-related accounts receivable of our acute care hospitals (“Receivables”) serve as collateral for the outstanding borrowings. We have accounted for this Securitization as borrowings. We maintain effective control over the Receivables since, pursuant to the terms of the Securitization, the Receivables are sold from certain of our subsidiaries to special purpose entities that are wholly-owned by us. The Receivables, however, are owned by the special purpose entities, can be used only to satisfy the debts of the wholly-owned special purpose entities, and thus are not available to us except through our ownership interest in the special purpose entities. The wholly-owned special purpose entities use the Receivables to collateralize the loans obtained from the group of third-party conduit lenders and liquidity banks. The group of third-party conduit lenders and liquidity banks do not have recourse to us beyond the assets of the wholly-owned special purpose entities that securitize the loans. At December 31, 2017, we had $420 million of outstanding borrowings pursuant to the terms of the Securitization, which are included in current maturities of long-term debt as of that date, and $20 million of available borrowing capacity. As of December 31, 2017, we had combined aggregate principal of $1.4 billion from the following senior secured notes:
| • | $300 million aggregate principal amount of 3.75% senior secured notes due in 2019 (“2019 Notes”) which were issued on August 7, 2014.
| • | $700 million aggregate principal amount of 4.75% senior secured notes due in 2022 (“2022 Notes”) which were issued as follows:
| o | $300 million aggregate principal amount issued on August 7, 2014 at par.
| o | $400 million aggregate principal amount issued on June 3, 2016 at 101.5% to yield 4.35%.
| • | $400 million aggregate principal amount of 5.00% senior secured notes due in 2026 (“2026 Notes”) which were issued on June 3, 2016.
Interest is payable on the 2019 Notes and the 2022 Notes on February 1 and August 1 of each year until the maturity date of August 1, 2019 for the 2019 Notes and August 1, 2022 for the 2022 Notes. Interest on the 2026 Notes is payable on June 1 and December 1 until the maturity date of June 1, 2026. The 2019 Notes, 2022 Notes and 2026 Notes were offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The 2019 Notes, 2022 Notes and 2026 Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. In June, 2016, we repaid the $400 million, 7.125% senior secured notes which matured on June 30, 2016. The average amounts outstanding during each of years 2017, 2016 and 2015 under the current and prior Credit Agreements, demand notes and accounts receivable securitization programs was $2.6 billion, $2.3 billion and $2.1 billion, respectively, with corresponding interest rates of 2.5%, 2.0% and 1.7%, respectively, including commitment and facility fees. The maximum amounts outstanding at any month-end were $2.7 billion in 2017, $2.7 billion in 2016 and $2.3 billion in 2015. The effective interest rate on our current and prior Credit Agreements, accounts receivable securitization programs, and demand notes, which includes the respective interest expense, commitment and facility fees, designated interest rate swaps expense and amortization of deferred financing costs and original issue discounts, was 2.8% in 2017, 2.6% in 2016 and 2.4% in 2015. Our Credit Agreement includes a material adverse change clause that must be represented at each draw. The Credit Agreement contains covenants that include a limitation on sales of assets, mergers, change of ownership, liens and indebtedness, transactions with affiliates, dividends and stock repurchases; and requires compliance with financial covenants including maximum leverage and minimum interest coverage ratios. We are in compliance with all required covenants as of December 31, 2017. At December 31, 2017, the net carrying value and fair value of our debt were each approximately $4.0 billion and $4.1 billion, respectively. At December 31, 2016, the carrying value and fair value of our debt were each approximately $4.1 billion. The fair value of our debt was computed based upon quotes received from financial institutions. We consider these to be “level 2” in the fair value hierarchy as outlined in the authoritative guidance for disclosures in connection with debt instruments. The aggregate scheduled maturities of our total debt outstanding as of December 31, 2017 are as follows:
|  | (000s) |
2018 |  | $ | 545,885 |
2019 |  |  | 2,391,033 |
2020 |  |  | 1,650 |
2021 |  |  | 1,696 |
2022 |  |  | 706,470 |
Later |  |  | 412,504 |
Total maturities before unamortized financing costs |  |  | 4,059,238 |
Less-Unamortized financing costs |  |  | (19,229 | )
Total |  | $ | 4,040,009 |

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