Concentra looking to refinance bank debt

By Sara Rosenberg

New York, July 16 - Concentra Operating Corp. is considering refinancing its existing senior credit facility and offering $150 million of senior subordinated notes due 2010, with the expectation being that the transactions will be completed during the third quarter of 2003, according to a news release.

The new credit facility would replace the existing credit facility, which consists of a $100 million revolver due Aug. 17, 2005, a $250 million term loan B due June 30, 2006 with an interest rate of Libor plus 325 basis points and a $125 million term loan C due June 30, 2007 with an interest rate of Libor plus 350 basis points, according to a filing with the Securities and Exchange Commission. As of March 31, the fair value of the company's borrowings under the credit facility was $331 million. There were no revolving credit borrowings at March 31.

Proceeds from the notes offering and borrowings under the new senior credit facility, together with cash on hand, will be used to repay and retire the remaining principal and credit extended under the company's existing senior credit facility, to retire certain interest rate hedge agreements and to redeem a portion of the principal and accreted interest of the senior discount debentures due 2010 of Concentra Inc.

Concentra is an Addison, Tex. provider of services designed to contain healthcare and disability costs and serves the occupational, auto and group healthcare markets.

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