Coram Obtains Senior Credit Facility
DENVER, Aug. 21 /PRNewswire/ -_ Coram Healthcare Corporation (NYSE: CRH) announced today that it had entered into a definitive agreement for a senior credit facility that would make up to $60 million available to the Company for acquisitions, working capital, letters of credit and other corporate purposes. The new senior credit facility has a 2.5 year term and an interest rate of prime plus 1.5%. The terms of the facility include the issuance of warrants to purchase 1.9 million shares of Coram stock at $.01 per share (subject to customary adjustments). Foothill Capital Corporation will be serving as the agent for the credit facility, with the initial lenders being Foothill Income Trust, L.P., an affiliate of Foothill Capital Corporation, Cerberus Partners L.P. and Goldman Sachs Credit Partners L.P.
On June 30, 1998 the Company completed the restructuring of its rollover notes, which should reduce interest expense by approximately $17 million annually and strengthen the balance sheet. "The debt restructuring, combined with our new line of credit, will allow Coram to identify and make a series of strategic acquisitions throughout the remainder of this year and next," said Donald J. Amaral, Chief Executive Officer. "Our plan for growth includes acquisitions of complementary home infusion, respiratory therapy and mail order pharmacy companies." |
