Ensign Group increases revolver, extends maturity, reduces interest

By Tali Rackner

Norfolk, Va., Feb. 8 – Ensign Group, Inc. increased its revolving credit facility by $100 million to an aggregate of $250 million, according to a Monday press release.

The amendment also reduced interest by 50 basis points to a range of Libor plus 175 bps to 275 bps.

In addition, the termination date for the revolving commitment was extended to Feb. 5, 2021.

The company may increase the facility by up to $150 million, according to an 8-K filing with the Securities and Exchange Commission.

Also, the debt to consolidated EBITDA ratio that would allow the majority of lenders to require Ensign and its operating subsidiaries to mortgage certain of their real property assets to secure the amended credit facility increased to 2.75 times from 2.5 times.

As of Feb. 1, $105 million was drawn under the facility.

SunTrust Bank is the administrative agent.

Proceeds will be used to fund acquisitions, renovate and upgrade existing and future facilities, cover working capital needs and for other corporate purposes.

Ensign’s current rent-adjusted net-debt-to-EBITDAR ratio is 3.37 times.

Ensign is a Mission Viejo, Calif.-based provider of skilled nursing and assisted living services, physical, occupational and speech therapies, home health and hospice services and other rehabilitative and healthcare services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.