LOUISVILLE, Ky., Aug. 6 /PRNewswire/ -- Caretenders HealthCorp
(Nasdaq: CTND) today announced the completion of a new $20 million revolving
credit facility with Bank One Kentucky NA. This financing replaces credit
agreements with Heller Financial Services and BankOne under which
approximately $14 million in borrowings were outstanding.
William B. Yarmuth, Chairman and CEO, commented, "We are pleased with the
confidence that BankOne has shown in our Company. Their willingness to grow
with us will help us meet the challenges facing our industry."
Yarmuth added, "Healthcare remains a complex and challenging business.
However, we remain steadfast in our belief that adult day health services will
be an increasingly important component of long-term health care services in
America. These services allow our customers, both patients and payors the
opportunity to avoid higher cost, and often undesirable institutionalization
in nursing homes. Clearly, as government and other payor sources continue to
constrain healthcare spending, increases in productivity and the use of lower
cost care alternatives become key to meeting the needs of the patients without
sacrificing quality."
"Our services meet these objectives and we are very happy to have such a
reputable high quality financial partner as Bank One to help us pursue this
strategy."
Borrowings available under the facility may be used for working capital,
acquisitions, development of new markets, and other general corporate
purposes.
Caretenders HealthCorp is a $100 million (revenues) adult day health care
service company with locations in Kentucky, Maryland, Alabama, Massachusetts,
Connecticut, Indiana, Ohio, and Florida.
All statements, other than statements of historical facts, included in
this news release, including the objectives and expectations of management for
future operating results, are forward-looking statements. These
forward-looking statements are based on the Company's current expectations.
Although the Company believes that the expectations with respect to the future
of adult day and home health services reflected in such forward-looking
statements are reasonable, there can be no assurance that such expectations
will prove to be correct.
Because forward-looking statements involve risks and uncertainties, the
Company's actual results could differ materially. The potential risks and
uncertainties which could cause actual results to differ materially could
include the impact of further changes in the Medicare reimbursement system,
including the ultimate implementation of a prospective payment system;
government regulation; health care reform; pricing pressures from fourth-party
payers; and changes in laws and interpretations of laws relating to the
healthcare industry. For a more complete discussion regarding these and other
factors which could affect the Company's financial performance, refer to the
Company's Securities and Exchange Commission filing on Form 10-K for the year
ended March 31, 1999, in particular information under the headings "Business"
and "Management's Discussion and Analysis of Financial Condition and Results
of Operations." The Company disclaims any intent or obligation to update its
forward-looking statements.
SOURCE Caretenders HealthCorp
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Company News On-Call:
http://www.prnewswire.com/comp/784275.html or fax,
800-758-5804, ext. 784275
CONTACT:
William Yarmuth or Steve Guenthner, of
Caretenders HealthCorp, 502-899-5355
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