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MARKHAM, Ontario, Nov. 08, 2024 (GLOBE NEWSWIRE) — Extendicare Inc. (“Extendicare” or the “Firm”) (TSX: EXE) right this moment introduced that it has entered into a brand new senior secured credit score facility for $275.0 million (the “Senior Secured Credit score Facility”) with a syndicate of Canadian chartered banks, for a time period of three years. The Senior Secured Credit score Facility consists of a revolving credit score facility for as much as $145.0 million (the “Revolving Facility”), which replaces the Firm’s former demand credit score amenities of $112.3 million, and a delayed draw time period mortgage facility in an quantity as much as $130.0 million (the “Delayed Draw Facility”). The Revolving Facility is on the market for working capital and common company functions, together with capital expenditures and acquisitions. The Delayed Draw Facility is on the market till April 30, 2025 to repay the Firm’s excellent $126.5 million of 5.00% convertible subordinated debentures due April 30, 2025 (the “2025 Debentures”). Extendicare might redeem the 2025 Debentures earlier than their maturity date in April 2025.
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“We tremendously admire the assist of our new lending group and their dedication to Extendicare. The brand new credit score amenities present further flexibility in our capital construction to assist our progress targets in our residence well being care and managed providers companies and efficiently execute on our long-term care redevelopment program,” stated David Bacon, Senior Vice President and Chief Monetary Officer.
The Senior Secured Credit score Facility contains provisions for consecutive one-year extensions of the preliminary three-year time period, and the power to extend the Revolving Facility by as much as $50.0 million, topic in every case to satisfying sure circumstances and lender approval. The Senior Secured Credit score Facility is secured by a portfolio of LTC properties in Ontario and is topic to customary monetary and non-financial covenants and different phrases. Borrowings beneath the Senior Secured Credit score Facility can happen by means of direct borrowings at both the prime fee or the Canadian In a single day Repo Fee Common (“CORRA”) plus an relevant margin, or by way of letters of credit score.
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Canadian Imperial Financial institution of Commerce (“CIBC”) is the Administrative Agent, whereas CIBC and Financial institution of Montreal are Joint Bookrunners and Joint Lead Arrangers. The lending syndicate consists of CIBC, Financial institution of Montreal, Royal Financial institution of Canada, The Toronto-Dominion Financial institution and Nationwide Financial institution of Canada. Extendicare was represented by Torys LLP and lenders have been represented by McCarthy Tétrault LLP.
About Extendicare
Extendicare is a number one supplier of care and providers for seniors throughout Canada, working beneath the Extendicare, ParaMed, Extendicare Help, and SGP Buying Community manufacturers. We’re dedicated to delivering high quality care to satisfy the wants of a rising seniors’ inhabitants, impressed by our mission to supply individuals with the care they want, wherever they name residence. We function a community of 123 long-term care properties (52 owned, 71 beneath administration contracts), ship roughly 10.5 million hours of residence well being care providers yearly, and supply group buying providers to 3rd events representing roughly 140,900 beds throughout Canada. Extendicare proudly employs roughly 22,000 certified, extremely educated and devoted workforce members who’re keen about offering high-quality care and providers to assist individuals stay higher.
Extendicare contact:
David Bacon, Senior Vice President and Chief Monetary Officer
T: (905) 470-4000
E: david.bacon@extendicare.com
www.extendicare.com
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