Barclays, Others Amend HealthSouth Senior Credit Facility
HealthSouth Corporation announced it has amended the credit agreement governing its senior secured credit facility. The amendment increases the size of its revolver from $500 million to $600 million, eliminates the former $100 million term loan ($95 million outstanding), extends the revolver maturity to August 2017 from May 2016, and lowers the interest rate spread by 50 basis points to an initial rate of LIBOR plus 1.75%.
Barclays Bank is the administrative agent and collateral agent, Citigroup Global Markets is syndication agent, and Bank of America, Goldman Sachs Lending Partners and Morgan Stanley Senior Funding are co-documentation agents.
“The strength and consistency of our financial performance and the reduced debt level led to an upgrade in our credit ratings in the second quarter of this year,” said Doug Coltharp, EVP and CFO of HealthSouth. “As a result, we were able to access improved terms in the senior credit market. The amended credit facility lowers our debt service requirements and further enhances our financial flexibility.”
HealthSouth is an owner and operator of inpatient rehabilitation hospitals. Operating in 27 states across the country and in Puerto Rico, HealthSouth serves patients through its network of inpatient rehabilitation hospitals, outpatient rehabilitation satellite clinics and home health agencies.