JPMorgan Amends Kindred Healthcare Credit Facilities
Kindred Healthcare, Inc. announced that it has completed amendments to increase by $100 million its senior secured term loan facility and expand by $100 million the borrowing capacity under its senior secured asset-based revolving credit agreement. JPMorgan Chase Bank was administrative agent and collateral agent for a syndicate of lenders.
The additional term loan facility borrowings were issued at 97.5% and the net proceeds were used to pay down a portion of the outstanding balance under the revolving credit facility. The aggregate amount currently outstanding under the term loan facility approximates $791 million.
In connection with the $100 million expansion of the borrowing capacity under its revolving credit facility, the company also modified the accounts receivable borrowing base which will allow the company to more easily access the full amount of the available credit. The company will have approximately $450 million of unused borrowing capacity under the revolving credit facility.
The other terms of the term loan facility and the revolving credit facility were unchanged.
Paul J. Diaz, CEO of the company, commented, “These amendments create an additional $200 million of credit capacity to enhance our ability to expand our continuum of post-acute care services. We believe that this additional credit capacity along with our ability to generate strong free cash flows provides us with a great opportunity to accelerate our cluster market strategy, further invest in our home health and hospice operations and expand our higher margin businesses.”
Kindred Healthcare through its subsidiaries provides healthcare services in 2,154 locations.