How much can Humana borrow under the new revolving credit agreement?

The Revolving Credit Agreement provides $5.0 billion in unsecured commitments. As of May 30, 2025, approximately $4.98 billion remained available after accounting for approximately $14.7 million of issued and undrawn letters of credit, with no borrowings outstanding.

What happened to Humana's previous revolving credit facilities?

The agreement amends and restates the existing 5-year unsecured revolving credit agreement dated June 2, 2023, increasing its commitments from $2.642 billion to $5.0 billion. It also replaces the existing 364-day $2.1 billion unsecured revolving credit agreement dated May 31, 2024, which has expired in accordance with its terms.

How is interest on borrowings under the facility calculated?

Loans bear interest at Term SOFR, Daily Simple SOFR or the base rate, plus a spread. Humana will also pay an annual facility fee under the agreement regardless of how much of the facility is utilized.

Does the agreement include any financial covenants or restrictions?

The agreement contains customary covenants, including a maximum debt to capitalization covenant, as well as customary events of default and standard conditions of borrowing, representations and warranties.

Where can investors find the full terms of the revolving credit agreement?

The filing states that the complete copy of the Revolving Credit Agreement will be filed as an exhibit to Humana's Quarterly Report on Form 10-Q for the six months ending June 30, 2025.

HUM 8-K: Material Agreements & Financial Events

01—Abstract

Summary

Summary of the 8-K filed May 30, 2025. Cited figures are marked; the original filing is the authoritative source.

Humana Inc. entered into a new $5.0 billion^a unsecured revolving credit agreement on May 30, 2025, with JPMorgan Chase Bank, N.A. as Agent and Bank of America, N.A. as Syndication Agent, along with several other banks and financial institutions.

The new agreement amends and restates the existing unsecured revolving credit agreement dated June 2, 2023, increasing its commitments from $2.642 billion to $5.0 billion^b. It also replaces the company's existing 364-day $2.1 billion unsecured revolving credit agreement dated May 31, 2024, which has expired in accordance with its terms. Loans under the Revolving Credit Agreement bear interest at Term SOFR, Daily Simple SOFR or the base rate plus a spread, and the company will pay an annual facility fee regardless of utilization.

The agreement contains customary covenants, including a maximum debt to capitalization covenant, customary events of default, and permits up to $1.0 billion^c of incremental commitments. The filing notes that Humana has other financial advisory and banking relationships with some parties to the agreement.

As of May 30, 2025, Humana had no borrowings outstanding under the facility and approximately $14.7 million^d of issued and undrawn letters of credit, leaving approximately $4.98 billion of remaining borrowing capacity. The full agreement is to be filed as an exhibit to the company's Quarterly Report on Form 10-Q for the six months ending June 30, 2025.

02—Key points

Key Highlights

Humana entered into a $5.0 billion unsecured revolving credit agreement on May 30, 2025, increasing commitments from $2.642 billion under its existing 5-year agreement.
The new facility replaces the expired 364-day $2.1 billion unsecured revolving credit agreement dated May 31, 2024.
Loans bear interest at Term SOFR, Daily Simple SOFR or the base rate plus a spread; an annual facility fee is payable regardless of utilization.
The agreement includes a maximum debt to capitalization covenant, customary events of default, and permits up to $1.0 billion of incremental commitments.
As of May 30, 2025, there were no borrowings outstanding and approximately $14.7 million of undrawn letters of credit.
Remaining borrowing capacity under the facility was approximately $4.98 billion as of May 30, 2025.
JPMorgan Chase Bank, N.A. serves as Agent, with Bank of America, N.A. as Syndication Agent; Humana has other financial advisory and banking relationships with some parties to the agreement.

03—Questions

Frequently Asked Questions

How much can Humana borrow under the new revolving credit agreement?
The Revolving Credit Agreement provides $5.0 billion in unsecured commitments. As of May 30, 2025, approximately $4.98 billion remained available after accounting for approximately $14.7 million of issued and undrawn letters of credit, with no borrowings outstanding.
What happened to Humana's previous revolving credit facilities?
The agreement amends and restates the existing 5-year unsecured revolving credit agreement dated June 2, 2023, increasing its commitments from $2.642 billion to $5.0 billion. It also replaces the existing 364-day $2.1 billion unsecured revolving credit agreement dated May 31, 2024, which has expired in accordance with its terms.
How is interest on borrowings under the facility calculated?
Loans bear interest at Term SOFR, Daily Simple SOFR or the base rate, plus a spread. Humana will also pay an annual facility fee under the agreement regardless of how much of the facility is utilized.
Does the agreement include any financial covenants or restrictions?
The agreement contains customary covenants, including a maximum debt to capitalization covenant, as well as customary events of default and standard conditions of borrowing, representations and warranties.
Where can investors find the full terms of the revolving credit agreement?
The filing states that the complete copy of the Revolving Credit Agreement will be filed as an exhibit to Humana's Quarterly Report on Form 10-Q for the six months ending June 30, 2025.

04—Continue

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