Providence Service Corporation Announces Amended and Restated $225 Million Credit Agreement PR Newswire 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 Rustand, CEO. 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." About Providence 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. Forward-Looking Statements 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 Website: http://www.provcorp.com Contact: AT THE COMPANY, Robert Wilson - Chief Financial Officer, 520/747-6600; or AT CAMERON ASSOCIATES, Alison Ziegler, 212/554-5469
Providence Service Corporation Announces Amended and Restated $225 Million Credit Agreement
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