Chemed Corporation Announces a Five-Year $450 Million Amended and Restated Credit Agreement
Chemed Corporation Announces a Five-Year $450 Million Amended and Restated Credit Agreement
Chemed (NYSE:CHE) entered a five-year $450 million amended and restated revolving credit facility, including $100 million for letters of credit, with a SOFR-based floating rate and a leverage-based spread.
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Chemed (NYSE:CHE) entered a five-year $450 million amended and restated revolving credit facility, including $100 million for letters of credit, with a SOFR-based floating rate and a leverage-based spread. The facility includes an expansion option for an additional $250 million.
JPMorgan Chase served as administrative agent and joint lead arranger; Bank of America, PNC and U.S. Bank participated as syndication and documentation agents. The agreement supports liquidity for Chemed’s VITAS Healthcare and Roto-Rooter operations.
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Key Terms
revolving credit facility, letters of credit, secured overnight financing rate, sofr, +2 more
6 terms
revolving credit facilityfinancial
"Terms of the Credit Agreement consist of a five-year $450 million revolving credit facility..."
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
letters of creditfinancial
"...revolving credit facility including $100 million for letters of credit."
A letter of credit is a promise from a bank to pay a seller if the buyer fails to do so, commonly used in trade and large contracts to ensure payment. Think of it as a bank standing in for the buyer, like a certified check or payment insurance that reduces the risk of nonpayment. For investors, letters of credit matter because they affect a company’s cash flow, borrowing needs and contingent liabilities, and signal how much credit support a business requires to secure deals.
secured overnight financing ratefinancial
"The interest rate...is generally the secured overnight financing rate (“SOFR”) plus an additional tiered rate..."
A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.
sofrfinancial
"The interest rate...is generally the secured overnight financing rate (“SOFR”) plus an additional tiered rate..."
The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.
floating ratefinancial
"The interest rate on this Credit Agreement has a floating rate that is generally the secured overnight..."
An interest rate on a loan, bond or deposit that is not fixed but resets at regular intervals based on a reference market rate plus a set margin, so the payments rise or fall as overall interest rates change. For investors, floating-rate instruments act like a weather vane: they can protect income when rates climb by increasing payouts, but they introduce unpredictable cash flow and price movement when rates fall or shift, affecting expected yield and valuation.
leverage ratiofinancial
"...plus an additional tiered rate which varies based on our current leverage ratio."
Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.
CINCINNATI, April 13, 2026 (GLOBE NEWSWIRE) -- Chemed Corporation ("Chemed") (NYSE:CHE) announced that it has entered into an Amended and Restated Credit Agreement for its Credit Facility (“Credit Agreement”). JPMorgan Chase Bank, N.A., acted as the Administrative Agent, Joint Lead Arranger and Joint Bookrunner for this transaction. Bank of America, N.A., was Joint Lead Arranger, Joint Bookrunner and Syndication Agent and PNC N.A. and U.S. Bank N.A. were Co-Documentation Agents.
Terms of the Credit Agreement consist of a five-year $450 million revolving credit facility including $100 million for letters of credit. The interest rate on this Credit Agreement has a floating rate that is generally the secured overnight financing rate (“SOFR”) plus an additional tiered rate which varies based on our current leverage ratio. The Credit Agreement includes an expansion feature that provides Chemed the opportunity to increase its revolver by an additional $250 million.
Listed on the New York Stock Exchange and headquartered in Cincinnati, Ohio, Chemed Corporation (www.chemed.com) operates two wholly owned subsidiaries: VITAS Healthcare and Roto-Rooter. VITAS is the nation's largest provider of end-of-life hospice care and Roto-Rooter is the nation's leading provider of plumbing and drain cleaning services.
Statements in this press release or in other Chemed communications may relate to future events or Chemed's future performance. Such statements are forward-looking statements and are based on present information Chemed has related to its existing business circumstances. Investors are cautioned that such forward-looking statements are subject to inherent risk that actual results may differ materially from such forward-looking statements. Further, investors are cautioned that Chemed does not assume any obligation to update forward-looking statements based on unanticipated events or changed expectations.
CONTACT:
Michael D. Witzeman
(513) 762-6714
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What are the key terms of Chemed's April 13, 2026 credit agreement (CHE)?
The agreement is a five-year $450 million revolving facility with $100 million for letters of credit. According to the company, it carries a SOFR-based floating rate plus a leverage-tiered spread and an expansion option for $250 million.
How does the expansion feature in Chemed's (CHE) credit facility work and why does it matter?
The expansion feature allows Chemed to increase its revolver by $250 million if certain conditions are met. According to the company, this provides added borrowing capacity to support operations or acquisitions without immediate refinancing.
Who are the lenders and arrangers on Chemed's (CHE) amended credit agreement announced April 13, 2026?
JPMorgan Chase serves as administrative agent, joint lead arranger and joint bookrunner; Bank of America is joint lead arranger and syndication agent. According to the company, PNC and U.S. Bank act as co-documentation agents.
What interest rate structure did Chemed announce for its new credit agreement (CHE)?
Chemed's facility uses a floating rate tied to SOFR plus a tiered spread that varies with leverage. According to the company, borrowing costs will change with market SOFR moves and the company's leverage ratio.
How does Chemed's $450M revolver affect liquidity for VITAS and Roto-Rooter (CHE)?
The revolver provides committed access to capital to support operations, letters of credit, and working capital needs. According to the company, the five-year facility strengthens short- to medium-term liquidity for VITAS Healthcare and Roto-Rooter.
