JPMorgan-Led Group Amends Kindred Healthcare ABL
Kindred Healthcare announced it has successfully completed amendments to its $750 million senior secured asset-based revolving credit facility and its $785.5 million senior secured term loan facility to increase its borrowing capacity and improve its financial flexibility.
The amendments include, among other things, the following changes:
According to an 8-K filing dated May 30, 2013, Kindred Healthcare entered into its last amendment to its ABL credit agreement dated June 1, 2011, encompassing an ABL revolver and term loan, with a lender group led by JPMorgan Chase as administrative agent and collateral agent. The amendment effectively reduced the applicable margin for term loan LIBOR borrowings from 3.75% to 3.25%; base rate borrowings from 2.75% to 2.25% and reduced the LIBOR floor to 1.00% from 1.50%.
Paul J. Diaz, CEO commented, “The improved financial flexibility provided by our revised credit agreements adds further momentum to our strategy of expanding our continuum of post-acute care services in our key Integrated Care Markets. This enhanced credit capacity, along with the expected proceeds from our planned asset sales, creates significant capital resources to expand our Integrated Care Markets and acquire additional home health and hospice operations, while still returning capital to our shareholders through a dividend.”
Louisville, KY-based Kindred Healthcare, a top-125 private employer in the U.S., is a FORTUNE 500 healthcare services company with annual revenues of approximately $6 billion and approximately 72,000 employees in 46 states.