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Centric Health Completes Purchase and Cancellation of $164 Million of Second Lien Senior Secured Notes
Centric Health Completes Purchase and Cancellation of $164 Million of Second Lien Senior S...
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[{"type":"text","content":"\n\n\n\nCentric Health Completes Purchase and Cancellation of $164 Million of Second Lien Senior Secured 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.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nCentric Health Completes Purchase and Cancellation of $164 Million of Second Lien Senior Secured Notes\nCanada NewsWire\nTORONTO, Feb. 23, 2016\n\n\n\n– Purchase of Notes Reduces Annual Interest Expense by $14.2 Million – \n\n\n\nTORONTO, Feb. 23, 2016 /CNW/ - Centric Health Corporation (\"Centric Health\" or \"the Company\") (TSX: CHH) today announced that, further to its news release of February 19, 2016, the Company has issued payment of $169,071,963.57 in respect of its 8.625% Second Lien Senior Secured Notes (the \"Notes\") that were surrendered under the Company's offer to purchase all of the Notes outstanding as of January 19, 2016 (the \"Offer\").  The total payment was composed of a principal amount of $164,264,000.00 plus $4,807,963.57 in accrued and unpaid interest up to but excluding the date of purchase.  The repurchase of the Notes will result in interest expense savings to the Company of $14.2 million annually.\n\n\"The retirement of $164 million of Note-related debt represents another significant milestone in our debt reduction strategy,\" said David Cutler, President and Chief Executive Officer, Centric Health.  \"With certainty around the magnitude of the Note purchase, we are now in a position to make final decisions regarding the next steps in our debt reduction plan and look forward to providing such details in the near term.\" \n\nThe purchase of Notes was financed by Excess Proceeds. As previously announced, the Company had Excess Proceeds (primarily from the net proceeds from the sale of the Company's rehabilitation, physiotherapy and medical assessments divisions completed on December 31, 2015) of $234,204,491. Immediately following payment for the Notes, the Company has $65,279,529 in Excess Proceeds remaining. The Company intends to use these remaining Excess Proceeds, subject to any required consents or approvals, for any purp...