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Centric Health Closes Sale of Physiotherapy, Rehabilitation and Assessments Operations for Gross Proceeds of Up to CAD$250 Million in Cash
Centric Health Closes Sale of Physiotherapy, Rehabilitation and Assessments Operations for...
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[{"type":"text","content":"\n\n\n\nCentric Health Closes Sale of Physiotherapy, Rehabilitation and Assessments Operations for Gross Proceeds of Up to CAD$250 Million in Cash\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.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nCentric Health Closes Sale of Physiotherapy, Rehabilitation and Assessments Operations for Gross Proceeds of Up to CAD$250 Million in Cash\nCanada NewsWire\nTORONTO, Jan. 4, 2016\n\n\n\n– Company Intends to Use Substantial Portion of Net Proceeds from Divestiture to Repay Debt –\n\n– Significantly Lower Leverage and Future Focus on Specialty Pharmacy and Surgical Centres Will Position Company to Generate Long-Term Sustainable Shareholder Value –\n\n\n\nTORONTO, Jan. 4, 2016 /CNW/ - Centric Health Corporation (\"Centric Health\" or \"the Company\") (TSX: CHH) today announced it has completed its previously announced sale of substantially all of the businesses within its Physiotherapy, Rehabilitation and Medical Assessments segment1 (the \"Sale Transaction\") to Audax Private Equity (\"Audax\") for cash consideration on closing of $245 million, subject to working capital adjustments, plus up to $5 million in contingent consideration2.  (All figures are in Canadian dollars.)\n\nThe Company intends to use a substantial portion of the net proceeds of the Sale Transaction of approximately $232 million3 to repay debt in accordance with the terms of the various debt instruments currently in place. This will substantially reduce the Company's debt and will improve leverage ratios and simplify and improve the Company's balance sheet.  The Company had total debt of $307.9 million as of September 30, 2015.\n\nThe impact of the net proceeds, illustratively setting off same against total debt on closing, would improve the Company's total debt to Adjusted EBITDA ratio to 5.2 times from 9.5 times and improve its interest coverage ratio to 2.6 times from 1.2 times4. The actual ratios will be dependent upon the eventual debt settlements as well as the impact of the proceeds of the Sale Transaction not used for debt repayme...