BofA, SunTrust Lead Providence Service Facility Refi
The Providence Service Corporation announced that it refinanced its existing credit facility with an amended and restated senior secured credit facility in an aggregate principal amount of $225 million.
The amended and restated credit facility is comprised of a $60 million, five-year term loan and a $165 million, five-year revolving credit facility.
The debt financing was led by Bank of America and SunTrust Bank.
In addition to refinancing, the proceeds of the amended and restated senior secured credit facility may be used to make capital expenditures such as acquisitions; repay Providence’s 6.5% convertible senior subordinated notes due in 2014; fund ongoing working capital requirements; and for other general corporate purposes.
“This new credit facility enables us to strengthen our capital structure while providing for additional financial capacity and flexibility,” said Warren Rustand, CEO.
Providence Service provides and manages the delivery of home and community based social services and NET management services to primarily government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections.