LOUISVILLE, Ky. (Aug. 22, 2013) — Kindred Healthcare Inc. announced Wednesday it has amended 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:
- ♦ Refreshing the option to increase the credit capacity in the aggregate between the ABL Facility and the Term Loan by $250 million,
- ♦ Establishing the option to further increase the credit capacity between the ABL Facility and the Term Loan upon satisfaction of a secured leverage ratio,
- ♦ Extending the maturity of the ABL Facility by two years to June 2018,
- ♦ Eliminating the annual and cumulative limitations on acquisitions,
- ♦ Raising to $150 million the Kindred’s ability to pay cash dividends, buy back stock and make other restricted payments, and
- ♦ Easing the restrictions on the company’s ability to make investments and enter into other joint venture arrangements.
The interest rate pricing levels were not changed in connection with the amendments.
“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,” said Kindred CEO Paul J. Diaz. ”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.
Kindred Healthcare is a top-125 private employer in the United States and a FORTUNE 500 healthcare services company based in Louisville with annual revenues of approximately $6 billion and approximately 72,000 employees in 46 states. As of June 30, Kindred through its subsidiaries provided healthcare services in 2,167 locations, including 116 transitional care hospitals, six inpatient rehabilitation hospitals, 169 nursing centers, 24 sub-acute units, 105 Kindred at Home hospice, home health and non-medical home care locations, 103 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served 1,644 non-affiliated facilities.