Concentra pursues $70 million in add-on term loans via amendment

By Sara Rosenberg

New York, May 10 - Concentra Operating Corp. is looking to amend its existing credit facility to get an additional $70 million in term loans, according to a company news release. The additional term loans would contain the same covenants and maturity dates as the existing credit agreement.

Proceeds from the term loans, combined with proceeds from a proposed $150 million senior subordinated notes offering and about $48 million of cash on hand, will be used to fund the tender offer for all outstanding 13% senior subordinated notes due 2009 and to pay a dividend of about $97 million to Concentra Inc., the parent company that will use the funds to pay a dividend to its stockholders.

The amendment and bond offering are anticipated to be completed during the current quarter.

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

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