Business
Centric Health Announces Closing of New 5-year Credit Facilities and Redemption of Senior and Convertible Notes
Centric Health Announces Closing of New 5-year Credit Facilities and Redemption of Senior ...
About this update from Carerx Corporation
[{"type":"text","content":"\n\n\n\nCentric Health Announces Closing of New 5-year Credit Facilities and Redemption of Senior and Convertible Notes\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, June 2, 2017\n\n\n\nTORONTO, June 2, 2017 /CNW/ - Centric Health Corporation (\"Centric Health\" or the \"Company\") (TSX:CHH), one of Canada's leading diversified healthcare services companies, announced today that, further to its news release of May 3, 2017, it closed the initial advance of its new credit facilities, being senior secured credit facilities of up to $100 million and $13.5 million of subordinated secured credit facilities.  The proceeds of the initial advance were applied to (i) payout Centric Health's existing senior secured revolving credit facility of up to $35 million, of which $26 million was drawn at closing, (ii) redemption of all of its 8.625% second lien senior secured notes due April 18, 2018 (the \"Senior Notes\") for the full redemption price of approximately $25.9 million, plus accrued and unpaid interest, and (ii) redemption of all of its 6.75% unsecured subordinated convertible notes due October 31, 2017 (the \"Convertible Notes\") for the full redemption price of approximately $27.5 million, plus accrued and unpaid interest.  The Senior Notes and the Convertible Notes were redeemed by the trustee for such notes on June 2, 2017.\n\nThe new credit facilities have a 5-year maturity.  Up to $2 million of the amount drawn on the subordinated credit facilities can be repaid without any premium or penalty on or before July 31, 2017 subject to certain conditions and the balance can be repaid without any premium or penalty 18 months after the date of the agreement subject to certain conditions. \n\nTogether with the Company's other debt reduction initiatives after taking into account the redemption of the Convertible Notes and Senior Notes, the Company's total annual finance charges have been reduced from $26.5 million in 2015 to an expected $4.5 million on a pro forma basis.\n\n\"This new credit ...