LOUISVILLE, Ky., Dec. 7, 2010 /PRNewswire-FirstCall/ -- Almost Family, Inc. (Nasdaq: AFAM), a leading regional provider of home health nursing services, announced today it has entered into a new five-year $125 million revolving credit facility that increases its financial flexibility through 2015 (the Facility). J.P. Morgan Securities LLC acted as sole bookrunner and sole lead arranger, while Bank of America, N.A. acted as syndication agent under the Facility which replaced the Company's previous $75 million credit facility.
William Yarmuth, Chief Executive Officer, commented, "We are extremely pleased to announce this new credit facility which furthers our ability to pursue larger acquisition opportunities. Despite the reimbursement, regulatory and capital markets environment of the past couple of years, we remain very optimistic about our ability to deploy capital and earn quality returns for our shareholders. We are proud that such a quality group of financial institutions has come together to provide us with this valuable capital."
New Credit Facility Details
The Facility includes a syndicate of four banks including JPMorgan Chase Bank, as Administrative Agent and Fifth Third Bank, both existing syndicate banks that expanded their commitments, in addition to Bank of America and Citibank, as two new syndicate banks. Other than amounts reserved for letters of credit, no amounts are currently outstanding under the Facility which extends the maturity profile of our bank commitment to December of 2015. The Facility may be used for general corporate purposes including acquisitions and also contains an accordion feature to increase total commitments to $175 million. Borrowings, other than letters of credit, under the credit facility generally will bear interest at a rate varying from LIBO rate plus 2.25% to LIBO rate plus 3.25%, depending on leverage. The Facility is secured by substantially all of the Company's assets and the stock of its subsidiaries.
About Almost Family
Almost Family, Inc., founded in 1976, is a leading regional provider of home health nursing services, with branch locations in Florida, Kentucky, Connecticut, New Jersey, Ohio, Massachusetts, Alabama, Missouri, Illinois, Pennsylvania, and Indiana (in order of revenue significance). Almost Family, Inc. and its subsidiaries operate visiting nurse and personal care segments. Altogether, Almost Family operates over 100 branch locations in 11 U.S. states.
Forward Looking Statements
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; potential audits and investigations by governmental and regulatory agencies, including the impact of any negative publicity or litigation; 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, 2009, and subsequently filed Forms 10-Q, 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.