Universal Hospital amends revolver to increase size, extend maturity, lower rate

By Sara Rosenberg

New York, May 31 - Universal Hospital Services Inc. amended its revolving credit agreement, increasing the size of the facility to $125 million from $100 million and extending the maturity by about 1½ years to May 2010, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

Furthermore, the amendment reduced the interest rate to Libor plus 225 basis points from Libor plus 300 basis points and modified the financial covenants to provide more operating flexibility.

In addition, the amendment provides for higher borrowing base advance rates such that the existing borrowing base increased to $110 million from about $90 million.

"We are extremely appreciative of the vote of confidence demonstrated by our bank group and are pleased with our new banking arrangements," said Gary Blackford, president and chief executive officer, in a company news release. "Our increased flexibility and capacity will allow us to grow as the leading medical equipment lifecycle services company well into the future."

The amendment was completed on May 26.

On May 27, the company had $46.8 million outstanding under the revolver.

General Electric Capital Corp. is the agent on the deal.

Universal Hospital is an Edina, Minn.-based medical equipment lifecycle services company.

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