HealthSouth Corporation (NYSE: HLS) today announced it has amended its credit agreement and extended maturity of a portion of its term loan. A segment of the lenders under the term loan that has a current outstanding balance of approximately $750 million will extend the maturity for $300 million of that loan from March 2013 to September 2015, contingent on certain conditions. The portion of the term loan maturing in 2013 will remain at the current interest rate of Libor plus 2.25 percent, while the portion with extended maturity will bear the interest rate of Libor plus 3.75 percent.
The credit agreement has been amended to allow, among other things, the Company to issue senior secured and unsecured notes in the bond market and increase the amounts the Company is able to spend on acquisitions and selected debt repurchases. The Company intends to file a Form 8-K, including a copy of the amended credit agreement, with the Securities and Exchange Commission on today. When filed, that Form 8-K will also be available on the Company's Web site, www.healthsouth.com, in the investor section under SEC filings.
"The amendment and extension were very well received by our lenders," said John Workman, Executive Vice President and Chief Financial Officer of HealthSouth. "As a result, the $300 million extension was significantly oversubscribed."
"The debt profile of the Company was greatly improved by the modification, giving the Company greater financial flexibility to manage its overall capital structure and liquidity, and greater ability to increase shareholder value," said Ed Fay, Senior Vice President - Finance and Treasurer of HealthSouth.