Liquidity and Capital Resources
At December 31, 2007, our outstanding indebtedness consisted of $147.0 million aggregate principal amount of senior subordinated notes due 2013, and a $249.3 million term loan facility that matures in 2012.
The senior secured credit facility requires us to comply on a quarterly basis with certain financial covenants, including an interest coverage ratio test and a maximum leverage ratio test, which will become more restrictive over time. In addition, the senior secured credit facility includes various negative covenants, including limitations on indebtedness, liens, investments, permitted businesses, restricted payments, transactions with affiliates and other matters, as well as certain customary representations and warranties, affirmative covenants and events of default including payment defaults.
The interest rates per annum applicable to loans, other than swingline
loans, under our senior secured credit facility, as amended are, at our
option, equal to either an alternate base rate or an adjusted LIBOR rate
for a one-, two-, three- or six-month interest period, or a nine- or
twelve-month period if available, in each case, plus an applicable margin.
The applicable margins on the loans, as amended, as of December 31, 2007
are (1) 3.25% for alternate base rate revolving loans, (2) 4.25% for
adjusted LIBOR revolving loans, (3) 3.25% for alternate base rate term
loans, and (4) 4.25% for adjusted LIBOR term loans. These margins are
subject to reduction based upon the ratio of our total indebtedness to our
consolidated adjusted EBITDA (as defined in the credit agreement governing
our senior secured credit facility, as amended). At December 31, 2007, the
interest rate applicable to the $249.9 millio
|SOURCE LifeCare Holdings, Inc.|
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