Hanger Orthopedic Group amends existing Credit Agreement

Hanger Orthopedic Group, Inc. (NYSE: HGR) announced today that it has amended its existing Credit Agreement to lower the applicable interest rates and modify certain other covenants. The Amendment (i) reduces the interest rate margin applicable to the term loan under the Credit Agreement by 0.75% to 3.00% and (ii) reduces the LIBOR  floor applicable to the term loan under the Credit Agreement from 1.50% to 1.00%. The Company incurred approximately $4.1 million in fees and expense in connection with the amendment, including a 1.0% prepayment premium of $3.0 million and approximately $1.1 million of advisor and professional fees.  The amendment also provides the Company with additional flexibility with regard to certain other covenants.   "We are pleased to have completed this amendment that will not only result in annual interest savings, but also provide us with additional flexibility," said George McHenry, Hanger's Chief Financial Officer.