LOUISVILLE, Ky., July 16 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM), a leading regional provider of home health nursing
services, today announced that it has established a new senior secured
multi-bank credit facility replacing its previous facility. The credit
facility is secured by substantially all of the Company's assets and the
stock of its subsidiaries.
The syndication was led by J.P. Morgan Securities, Inc.
The new facility provides for:
-- Up to $75 million in borrowings with a maturity date of July 2011 -- Availability of borrowings of up to 3.0 times Earnings Before Interest Taxes Depreciation and Amortization ("EBITDA"), as defined
-- EBITDA of acquired operations to be included in the borrowing base subject to certain limits
-- An interest rate varying from Libor plus 1.60% to Libor plus 2.60% depending on leverage, and
-- An accordion feature providing for potential future expansion of the facility to $100 million
William B. Yarmuth, Chairman and CEO, commented on the new of the facility, "We are extremely excited about the achievement of this financing, our first syndicated multi-bank facility, especially given the current challenging credit market. We're very pleased that we continue to have the much appreciated and long-standing support of Chase and J.P. Morgan for our strategic development plan and happy that we now have three new financial partners as well. This new facility significantly increases our available resources to continue the pursuit of our development objectives."
About Almost Family, Inc.
Almost Family, Inc., founded in 1976, is a leading regional provider of home health nursing services, with branch locations in Florida, Kentucky, Ohio, Connecticut, Massachusetts, Missouri, Alabama, Illinois, and Indiana (in order of revenue significance). Almost Family, Inc. and its subsidiaries operate a Medicare-certified segment and a personal care segment.
The Company recently announced an agreement to acquire the stock of Patient Care, Inc. which, subject to regulatory approvals is expected to close in the third quarter. Following completion of the Patient Care acquisition, Almost Family will operate 89 branch locations in 11 U.S. states.
Forward Looking Statements
All statements, other than statements of historical facts, included in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "may," "will," "expect," "believe," estimate," "project," anticipate," "continue," or similar terms, variations of those terms or the negative of those terms. These forward-looking statements are based on the Company's current plans, expectations and projections about future events.
Because forward-looking statements involve risks and uncertainties, the
Company's actual results could differ materially from any future results,
performance or achievements expressed or implied by such forward-looking
statements. The potential risks and uncertainties which could cause actual
results to differ materially include: regulatory approvals or third party
consents may not be obtained, the impact of further changes in healthcare
reimbursement systems, including the ultimate outcome of potential changes
to Medicare reimbursement for home health services and to Medicaid
reimbursement due to state budget shortfalls; the ability of the Company to
maintain its level of operating performance and achieve its cost control
objectives; changes in our relationships with referral sources; the ability
of the Company to integrate acquired operations; government regulation;
health care reform; pricing pressures from Medicare, Medicaid and other
third-party payers; changes in laws and interpretations of laws relating to
the healthcare industry; and the Company's self-insurance risks. For a more
complete discussion regarding these and other factors which could affect
the Company's financial performance, refer to the Company's various filings
with the Securities and Exchange Commission, including its filing on Form
10-K for the year ended December 31, 2007, in particular information under
the headings "Special Caution Regarding Forward-Looking Statements" and
"Risk Factors." The Company undertakes no obligation to update or revise
its forward-looking statements.
Almost Family, Inc. The Ruth Group
Steve Guenthner Stephanie Carrington/Jared Hoffman
(502) 891-1000 (investors)
(646) 536-7017 / 7013
Jason Rando/Jeneane Smith (media)
(646) 536-7025 / 7012
|SOURCE Almost Family, Inc.|
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