$40 Million Facility to Provide Expansion Capital Through 2010
LOUISVILLE, Ky., Dec. 4 /PRNewswire-FirstCall/ -- Almost Family, Inc.
(Nasdaq: AFAM) today announced that it has amended the terms of its
previously existing $22.5 million bank credit facility.
The amended facility provides for:
-- Up to $40 million in borrowings with a maturity date of June 2010.
-- The borrowing base formula permits borrowings of up to 3.5 times
Earnings Before Interest Taxes Depreciation and Amortization
("EBITDA").
-- Historical EBITDA of acquired operations may be included in the
borrowing base (up to a limit of 75% of the Company's historical
EBITDA).
-- The facility's interest rate varies from prime minus 1.50% to prime
minus 0.25% depending on leverage.
William B. Yarmuth, Chairman and CEO commented on the extension of the
facility: "This expanded facility significantly increases our available
resources to continue the pursuit of our development objectives." Yarmuth
added: "We have had a long and outstanding relationship with JPMorgan Chase
and we are very happy to have their continued vote of confidence in our
management team and our strategy." The credit facility is secured by
substantially all of the Company's assets and the stock of its
subsidiaries.
Almost Family, Inc., founded in 1976, is a leading regional provider of
home health nursing services, with branch locations in Florida, Kentucky,
Ohio, Connecticut, Massachusetts, Missouri, Alabama, Illinois, and Indiana
(in order of revenue significance). Almost Family, Inc. and its
subsidiaries operate a Medicare-certified segment and a personal care
segment. Altogether, Almost Family operates 73 branch locations in 9 U.S.
states.
All statements, other than statements of historical facts, included in
this news release, are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of forward-looking terminology such
as "may," "will," "expect," "believe," estimate," "project," anticipate,"
"continue," or similar terms, variations of those terms or the negative of
those terms. These forward-looking statements are based on the Company's
current plans, expectations and projections about future events.
Because forward-looking statements involve risks and uncertainties, the
Company's actual results could differ materially from any future results,
performance or achievements expressed or implied by such forward-looking
statements. The potential risks and uncertainties which could cause actual
results to differ materially include: regulatory approvals or third party
consents may not be obtained; the impact of further changes in healthcare
reimbursement systems, including the ultimate outcome of potential changes
to Medicare reimbursement for home health services and to Medicaid
reimbursement due to state budget shortfalls; the ability of the Company to
maintain its level of operating performance and achieve its cost control
objectives; changes in our relationships with referral sources; the ability
of the Company to integrate acquired operations; government regulation;
health care reform; pricing pressures from Medicare, Medicaid and other
third-party payers; changes in laws and interpretations of laws relating to
the healthcare industry; and the Company's self-insurance risks. For a more
complete discussion regarding these and other factors which could affect
the Company's financial performance, refer to the Company's various filings
with the Securities and Exchange Commission, including its filing on Form
10-K for the year ended December 31, 2006, in particular information under
the headings "Special Caution Regarding Forward-Looking Statements" and
"Risk Factors." The Company undertakes no obligation to update or revise
its forward-looking statements.
SOURCE Almost Family, Inc.
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Related links:
http://www.almost-family.com
http://www.prnewswire.com/comp/784275.html /
CONTACT:
William Yarmuth or Steve Guenthner, both of
Almost Family, Inc., +1-502-891-1000
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