PLANO, Texas, June 3, 2013 /PRNewswire/ -- Hospital Acquisition LLC (the Company), the parent company of LifeCare Holdings LLC and the LifeCare family of hospitals, announced today it has completed its purchase of substantially all of the assets of LCI Holdco, LLC, and emerged from the Chapter 11 bankruptcy process.
The $320 million sale, which was approved by the U.S. Bankruptcy Court for the District of Delaware, results in a significant reduction in debt at lower interest rates. The Company's new credit facility includes a $200 million term loan and access to a $30 million working capital line of credit.
LifeCare's Plano-based management team, representing some of the most experienced healthcare executives in the post acute space, will continue to lead the Company.
"We move forward from this process with a restructured balance sheet, a talented leadership team and the support of a strong and experienced board," said LifeCare Holdings Chairman and Chief Executive Officer Phillip B. Douglas. "With the support of our corporate team and the continued trust of referrers, vendors and suppliers in the communities we serve, we emerge from this process as a stronger hospital system."
Comprised of 26 long term acute hospitals located across the United States, the LifeCare family of hospitals specializes in caring for patients in need of high level, acute care over an extended period of time. Many patients are transferred to the Company's hospitals after a stay in an intensive care unit and have often experienced multiple system failures and slow response to traditional medical treatments.
"With a greatly improved debt structure, the Company's financial position now better reflects the clinical strength we consistently achieve on the hospital level," said Douglas. "We achieved impressive operational performance in the first quarter and are positioned to continue to lead our industry space in clinical outcomes and quality excellence."
Information about the Chapter 11 cases, including access to court documents, can be obtained at http://www.kccllc.net/LifeCare.
About LifeCare Holdings LLC
LifeCare, based in Plano, Texas, currently operates 26 long term acute care hospitals located in nine states. Long-term acute care hospitals specialize in the treatment of medically complex patients who typically require extended hospitalization. For more information on LifeCare, visit our website at www.lifecare-hospitals.com.
This press release includes forward-looking statements regarding, among other items, operations, proposed regulations and their possible effect on the Company's results. Such statements are subject to a number of uncertainties and risks that could significantly affect current plans. Furthermore, actual results may differ materially from those experienced or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, risks relating to operating in a regulated environment, implementing our business plan, maintaining relationships with physicians in our markets, availability of sufficient nurses and therapists, competition, retaining key management, ability to service our debt requirements, litigation matters and availability of insurance. Many of the factors that will determine the Company's future results are beyond the ability of management to control or predict. As a result, you should not place undue reliance on forward-looking statements, which reflect management's views only as the date hereof. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE LifeCare Holdings LLC