AUSTIN, Texas, Jan. 5, 2010 (GLOBE NEWSWIRE) -- HealthTronics, Inc. (Nasdaq:HTRN), a leading provider of urology services and products, today announced that it has entered into a new credit agreement with JPMorgan Chase Bank, Bank of America and Wachovia Bank, the same syndicate of lenders that were parties to the Company's prior credit agreement. The new credit agreement amended the prior credit agreement by extending the maturity date of the $60 million revolver from March 23, 2010 to December 31, 2012, increasing the borrowing rate to LIBOR plus 2.6% to 3.1%, eliminating the interest coverage ratio and replacing it with a fixed charge coverage ratio, increasing the dollar limit on stock repurchases from $10 million to $20 million (but subject to maintaining a total leverage ratio of 2.00 to 1.00), and making other minor changes. Except as described above, the terms of the prior credit agreement remain in effect under the new credit agreement. As of September 30, 2009, the Company had $44 million drawn on the revolver.
James Whittenburg, Chief Executive Officer of HealthTronics, commented, "We are very pleased with the terms set forth in the new credit agreement and with the responsiveness of our syndicate members in addressing the Company's need for financial flexibility. Our new facility maintains a reasonable interest rate, currently LIBOR plus 2.85%, which means we are borrowing at a total cost of 3.1% today. Under the covenants of the new credit agreement, we have maintained the ability to safely draw the full amount of the line given our current financial position. The new credit facility will also allow us the flexibility to buy back up to $20 million of our stock while retaining the "permitted company acquisitions" basket from the prior facility. Collectively, these terms provide HealthTronics tremendous flexibility in choosing how to allocate capital to best create shareholder value."
About HealthTronics, Inc.: HealthTronics is a premier urology company providing an exclusive suite of healthcare services and technology, including urologist partnership opportunities, surgical and capital equipment, maintenance services offerings, and anatomical pathology services. For more information, visit www.healthtronics.com.
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