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,
|SOURCE Integrated Healthcare Holdings, Inc.|
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