Providence Service Corporation Announces Amended and Restated $225 Million
TUCSON, Ariz., Aug. 5, 2013
TUCSON, Ariz., Aug. 5, 2013 /PRNewswire/ -- The Providence Service Corporation
(Nasdaq: PRSC) today announced that it has refinanced its existing credit
facility with an amended and restated senior secured credit facility in an
aggregate principal amount of $225 million.
The amended and restated credit facility is comprised of a $60 million,
five-year term loan and a $165 million, five-year revolving credit facility.
In addition to refinancing the Company's existing debt obligations, the
proceeds of the amended and restated senior secured credit facility may be
used to, make capital expenditures such as acquisitions, repay Providence's
6.5% Convertible Senior Subordinated Notes due in 2014, fund ongoing working
capital requirements, and for other general corporate purposes.
"This new credit facility enables us to strengthen our capital structure while
providing for additional financial capacity and flexibility," said Warren
Interest accrues on the outstanding principal amount of the loans at a rate
per annum of LIBOR plus an applicable margin, which ranges from 1.75% to 2.50%
and is payable quarterly based on the Company's consolidated leverage ratio as
defined in the credit agreement governing the facility. At the Company's
election, interest can accrue at an alternative base rate plus an applicable
margin ranging from 0.75% to 1.50%.
The Company is also obligated to pay a commitment fee on the unused portion of
the revolving credit facility and pay letter of credit fees on the maximum
amount available to be drawn under each letter of credit outstanding under the
revolving credit facility. The commitment fee ranges from 0.25% to 0.50% and
the letter of credit fee ranges from 1.75% to 2.50%, in each case, payable
quarterly based on the consolidated leverage ratio of the Company.
The debt financing was led by Bank of America, N.A. and SunTrust Bank.
The final agreement will be filed with the Securities and Exchange Commission
as part of the Company's Form 8-K dated August 5, 2013 and will be available
at www.provcorp.com in the investor section under "SEC filings."
The Providence Service Corporation provides or manages the delivery of home
and community based social services and NET management services to primarily
government sponsored clients under programs such as welfare, juvenile justice,
Medicaid and corrections. Providence is unique in that it provides or manages
its social services primarily in the client's own home or in community based
settings rather than in hospitals of other treatment facilities and provides
its NET management services through local transportation providers rather than
an owned fleet of vehicles. The Company provides a range of services through
its direct entities to approximately 54,500 clients through 650 active
contracts at March 31, 2013, with an approximate 16.8 million individuals
eligible to receive the Company's non-emergency transportation services. The
Company had over $1.1 billion in revenues in 2012.
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Words such as "believe,"
"demonstrate," "expect," "estimate," "forecast," "anticipate," "should" and
"likely" and similar expressions identify forward-looking statements. In
addition, statements that are not historical should also be considered
forward-looking statements. Readers are cautioned not to place undue reliance
on those forward-looking statements, which speak only as of the date the
statement was made. Such forward-looking statements are based on current
expectations that involve a number of known and unknown risks, uncertainties
and other factors which may cause actual events to be materially different
from those expressed or implied by such forward-looking statements. These
factors include, but are not limited to the global credit crisis, capital
market conditions, the implementation of the healthcare reform law, state
budget changes and legislation and other risks detailed in Providence's
filings with the Securities and Exchange Commission, including its Annual
Report on Form 10-K for the fiscal year ended December 31, 2012. Providence is
under no obligation to (and expressly disclaims any such obligation to) update
any of the information in this press release if any forward-looking statement
later turns out to be inaccurate whether as a result of new information,
future events or otherwise.
SOURCE The Providence Service Corporation
Contact: AT THE COMPANY, Robert Wilson - Chief Financial Officer,
520/747-6600; or AT CAMERON ASSOCIATES, Alison Ziegler, 212/554-5469
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