SANTA ANA, Calif., Oct. 19 /PRNewswire-FirstCall/ -- Today, Integrated Healthcare Holdings, Inc. ("IHHI") (OTC Bulletin Board: IHCH), the owner of four Orange County hospitals, announced that effective October 9, 2007, it has completed a major re-financing of all of its debt instruments. The Company said that it closed escrow on four debt instruments with Medical Capital Corporation and affiliates of Anaheim, California, in the total amount of $140.7 million dollars, which restructures all of the Company's existing debt instruments, reduces its borrowing costs by more than $5.0 million dollars annually, and provides the Company access to additional capital.
Bruce Mogel, CEO of IHHI stated that, "the debt restructuring was made possible by the excellent work done by IHHI's management team in improving revenue and reducing costs, which have contributed to the creditworthiness of the Company and allowed it to borrow at lower rates. Simultaneously," Mr. Mogel continued, "the Company has also settled a long standing dispute with its landlord, a physician investment group, which will allow the Company to turn even greater attention to operations in its four Orange County hospitals and continue to provide the excellent healthcare service to the community of Orange County that these four hospitals are known for."
Maury DeWald, Chairman of the Finance Committee of IHHI's Board stated that, "we are delighted that our relationship with Medical Capital Corporation of Anaheim has evolved to the point that they see IHHI as a Company that they want to be involved with on a larger scale. The new financing not only substantially reduces IHHI's borrowing costs but also provides the Company with additional working capital facilities, and reflects the reality that IHHI has overcome very significant obstacles to emerge as a strong and vital part of Orange County's healthcare delivery system."
Fernando Niebla, independent board member for IHHI, commented that, "The ability of IHHI to reach agreement on a new lease with its landlord is a seminal event for the Company. In concert with the re-financing terms, the new lease provides long term financial and relationship stability for IHHI, which will allow the management team to focus all of its efforts on further operational improvements and growth, without the distraction of disputes ancillary to the primary objectives of the Medical Centers."
Integrated Healthcare Holdings, Inc. is a partially physician-owned management company that operates the following four hospital facilities in Orange County, California: 282-bed Western Medical Center in Santa Ana; 188- bed Western Medical Center in Anaheim; 178-bed Coastal Communities Hospital in Santa Ana; and 114-bed Chapman Medical Center in Orange.
Forward Looking Statements
Statements in this press release regarding the business of Integrated Healthcare Holdings, Inc. which are not historical in nature are "forward- looking statements." Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed or projected. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Actual results may differ materially from those anticipated, estimated, or projected in the forward-looking statements due to various risks and uncertainties, including those discussed in our Annual Report on Form 10-K under the caption "Risk Factors." Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of their dates. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this press release.
|SOURCE Integrated Healthcare Holdings, Inc.|
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