Ensign amends for $350 million revolver in connection with spinoff

By Sarah Lizee

Olympia, Wash., Oct. 1 – Ensign Group, Inc. amended its credit facility on Friday, providing for a $350 million revolving line of credit, according to an 8-K filing with the Securities and Exchange Commission.

The amendment was made in connection with Ensign’s spinoff of Pennant Group, Inc. Ensign stockholders received one share of Pennant common stock for every two shares of Ensign common stock held at the close of business on Sept. 20.

Borrowings are supported by a lending consortium arranged by SunTrust Robinson Humphrey, Inc.

The company also terminated its term loan under the amended credit facility, which had a total outstanding principal amount of $107.5 million plus accrued interest through Sept. 30.

Loans under the credit agreement bear interest at Libor plus 150 basis points to 250 bps, based on the consolidated total net debt to consolidated EBITDA ratio.

There is a commitment fee that ranges from 35 bps to 45 bps, also depending on the consolidated total net debt to consolidated EBITDA ratio.

All other terms of the credit agreement are unchanged, the filing noted.

Ensign is a Mission Viejo, Calif.-based provider of skilled nursing and assisted living services, physical, occupational and speech therapies, home health and hospice services and other rehabilitative and healthcare services.

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