On May 30, 2025, Humana Inc (NYSE: HUM) announced the expansion of its unsecured revolving credit facility from \(2.642 billion to \)5 billion. This strategic financial move nearly doubles the company’s borrowing capacity, reinforcing its liquidity position and supporting its operational and growth objectives. The new credit agreement supersedes the existing 5-year \(2.642 billion credit facility and replaces an expired 364-day \)2.1 billion unsecured revolving credit agreement.
The credit facility is backed by a syndicate of reputable banks, including JPMorgan Chase Bank, Bank of America, Citibank, Goldman Sachs, PNC Bank, U.S. Bank, and Wells Fargo Securities. Loan interest rates under this agreement are based on Term SOFR, Daily Simple SOFR, or the base rate plus a spread, with an annual facility fee payable regardless of utilization.
As of May 30, 2025, Humana had no borrowings outstanding under this expanded facility but maintained approximately \(14.7 million in undrawn letters of credit, providing a substantial \)4.98 billion in borrowing capacity.
From a financial perspective, Humana’s fiscal year 2024 reflects strong fundamentals with total liabilities of \(30.034 billion, shareholder equity of \)16.375 billion, and total assets of \(46.479 billion. The company’s total debt to capitalization ratio was 41.72%, indicating a balanced capital structure. Operating income was \)2.562 billion, with interest expenses of \(660 million. Capital expenditures totaled \)575 million, indicating ongoing investments in business growth and operational infrastructure.
This mortgage refinancing aligns with management’s prior emphasis on capital efficiency, liquidity strength, and preparedness to navigate macroeconomic challenges such as tariffs, government efficiency initiatives, and economic uncertainties. The increased revolving credit line empowers Humana with enhanced financial agility to capitalize on growth opportunities, manage liquidity demands effectively, and maintain robust financial health.
In conclusion, Humana’s $5 billion revolving credit agreement, effective May 2025, strategically positions the company to strengthen its financial foundation, sustain operational momentum, and foster long-term shareholder value.
For additional information, access the official SEC filing here: https://sec.gov/Archives/edgar/data/49071/000089534525000200/ff4885689_8k-humana.htm
Tags: HUM, Humana Inc, Q2 2025, revolving credit agreement, financial flexibility, capital management