Concentra plans to pay down $25 million of bank debt

New York, Nov. 5 - Concentra Operating Corp. said it plans to pay down $25 million of term bank loans using money raised from selling common stock to its primary equity sponsors.

The Addison, Texas healthcare and disability services company said it has reached an agreement in principal for the sale of $25 million of stock, with closing expected this month.

The transaction is being done in connection with a pending amendment to the leverage ratio and interest coverage covenants in Concentra's credit facility and a proposed acquisition of Em3 Corp. and OccMed Systems, Inc. Concentra said it is in compliance with its covenants but is looking to delay future tightenings in the levels it has to meet.

Both Em3 and OccMed are majority owned by Welsh, Carson, Anderson & Stowe, Concentra's primary shareholder. The acquisition will be financed with $43 million of stock and the repayment of $4.4 million of revolving debt and accrued interest.

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