National HealthCare renews $75 million credit line at Libor plus 70 bps

By Susanna Moon

Chicago, Oct. 23 – National HealthCare Corp. renewed its $75 million line of credit Wednesday with Bank of America as lender, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans is Libor plus 70 basis points. Letter-of-credit fees are 0.1% times the maximum amount available to be drawn under outstanding letters of credit.

There is a sub-limit of $5 million for letters of credit.

The facility matures Oct. 21, 2015, and between 90 and 120 days prior to maturity the company may request an extension for 364 days.

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

The company may prepay the loans at any time, without penalty.

The loan obligations are guaranteed by some subsidiaries and are secured by pledges by the company and the guarantors of (i) 100% of the equity interests of domestic subsidiaries and (ii) up to 65% of the voting equity interests and 100% of the non-voting equity interests of foreign subsidiaries, in each case, held by the company or the guarantors.

“We are pleased to complete our seventh amendment to our credit agreement with Bank of America,” Robert Adams, the company’s chief executive officer, said in a company press release.

“The credit facility allows us the financial flexibility to continue to implement our strategy of expanding our continuum of post-acute care services, which includes skilled nursing, assisted living, homecare and hospice.”

National HealthCare is a Murfreesboro, Tenn., long-term care hospital operator.

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