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Centric Health Further Reduces Debt By $30 Million Through Redemption of All Remaining Alaris Preferred Partnership Units and Take-Back Loan of $8.4 Million Loan from Alaris
Centric Health Further Reduces Debt By $30 Million Through Redemption of All Remaining Ala...
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[{"type":"text","content":"\n\n\n\nCentric Health Further Reduces Debt By $30 Million Through Redemption of All Remaining Alaris Preferred Partnership Units and Take-Back Loan of $8.4 Million Loan from Alaris\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 Further Reduces Debt By $30 Million Through Redemption of All Remaining Alaris Preferred Partnership Units and Take-Back Loan of $8.4 Million Loan from Alaris\nCanada NewsWire\nTORONTO, March 7, 2016\n\n\n\n– Redemption of Preferred Partnership Units Combined with Recent Senior Note Retirement Reduces Outstanding Debt by $194.3 Million, Lowering Annual Interest Expense by $17.5 Million –\n\n\n\nTORONTO, March 7, 2016 /CNW/ - Centric Health Corporation (\"Centric Health\" or \"the Company\")  (TSX: CHH) today announced a further $30 million reduction of its outstanding debt through the redemption (without penalty) by LifeMark Health Limited Partnership, an affiliate controlled by Centric Health, of all its Preferred Partnership Units (the \"Units\") issued and outstanding to Alaris Income Growth Fund Partnership (\"Alaris\") for the full redemption price of approximately $38.4 million.  Prior to redemption, the Units had an implied interest rate of 11.2% with the principal and interest rate increasing 4% annually.  Immediately upon redemption of the Units, Alaris loaned Centric Health approximately $8.4 million in consideration of a promissory note (the \"Alaris Promissory Note\") on substantially the same economic terms as applied to the equivalent value of Units.\n\nThe repurchase of the Units, as well as the recently completed purchase of a principal amount of $164.3 million of Second Lien Senior Secured Notes (the \"Notes\"), both of which were funded from the proceeds of the sale of the Company's Rehabilitation, Physiotherapy and Medical Assessments businesses completed on December 31, 2015 (the \"Sale Transaction\"), have reduced Centric Health's outstanding debt by an aggregate of $194.3 million, representing 83% of the net proceeds from the Sale Transaction....