Humana Borrows Big to Buy the Rest of Kindred at Home?

Strange Tony,

Humana reported the company issued $1.1 billion in debt.  The SEC filing says it is for general corporate purposes but my gut says it might be used to buy the rest of Kindred at Home from financial rapscallions TPG Capital and Welsh, Carson, Anderson and Stowe.

The recent financial implosion creates big problems for our 60% owners.  In this environment cash is king.  Washington may supply bailout money for Humana and its greedy partners, however the quickest way for our majority owners to cash up is to require Humana to buy them out.

TPG and WCAS have another reason to do the deal now.  It would be based on EBITDA prior to the coronavirus meltdown.  Humana has to pay 10.5 to 11.5 times EBITDA per the KAH buyout agreement.

The chart showed the deal as of February 2018 when Kindred CEO Ben Breier and a conflicted Board sold the company on the cheap.

Humana spent 2019 destroying our hospice by dramatically cutting staff, harming quality of care and forcing cumbersome, garbage in-garbage out technology on our site.  Other than their "investment" in crappy, unreliable technology our new owners used our hospice as a cash sluice.

It's likely $1.1 billion is not enough to buy out both rapscallions.  As of 12-31-19 Humana had over $4 billion in cash and cash equivalents.

It's ironic that Humana's borrowings could be used to save financial rapscallions.  I wonder how my former co-workers who lost jobs might feel about that.  They were sacrificed on Broussard, Causby, and Graham's altar of profits.

Anonymous.