Home » Kindred Healthcare expands its credit capacity by $200 million

Kindred Healthcare expands its credit capacity by $200 million

Revolving Credit and Term Loan Facility Each Expanded by $100 Million

LOUISVILLE, Ky.–(BUSINESS WIRE)–Kindred Healthcare Inc. (NYSE:KND) today announced  it has successfully 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.

Net proceeds of the additional term loan borrowings, issued at 97.5 percent, 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 is $791 million.

In connection with the $100 million expansion of the borrowing capacity under its revolving credit, Kindred  modified its accounts receivable borrowing base to allow the Company to more easily access the full amount of the available credit. Kindred will have $450 million of unused borrowing capacity under the revolving credit facility.

Other terms of the term loan and revolving credit facilities were unchanged.

“These amendments create an additional $200 million of credit capacity to enhance our ability to expand our continuum of post-acute care services,” CEO Paul J. Diaz said. “We believe  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 Inc., a top-125 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Ky., with annual revenues of $6 billion and approximately 76,000 employees in 46 states. At June 30, 2012, Kindred through its subsidiaries provided healthcare services in 2,154 locations, including 118 long-term acute care hospitals, six inpatient rehabilitation hospitals, 224 nursing and rehabilitation centers, 27 sub-acute units, 52 hospice and home care locations, 102 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served 1,625 non-affiliated facilities. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for four years in a row, Kindred’s mission is to promote healing, provide hope, preserve dignity and produce value for each patient, resident, family member, customer, employee and shareholder we serve.