National HealthCare renews $75 million credit line via Bank of America

By Susanna Moon

Chicago, Oct. 25 - National HealthCare Corp. said it again extended its $75 million one-year line of credit with Bank of America, this time to Oct. 23, 2013. The company may use up to $5 million for letters of credit.

The company entered into a fifth amendment of its credit agreement on Wednesday, according to an 8-K filing with the Securities and Exchange Commission. The company originally closed the facility with Bank of America on Oct. 30, 2007 and most recently extended the revolver on Oct. 25, 2011.

Between 90 and 120 days prior to maturity, the company may request extending the facility for another 364 days.

Proceeds will be used for general corporate purposes, including working capital and acquisitions.

Interest on the loans is Libor plus 70 basis points, and letter-of-credit fees are 0.7% times the maximum amount available under outstanding letters of credit.

"With the renewal of our credit arrangement with Bank of America, we continue to have access to ample financial resources to develop growth opportunities across all areas of senior care," Robert Adams, chief executive officer, said in the company's press release.

The company is a Murfreesboro, Tenn., long-term care hospital operator.

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