LOUISVILLE, Ky., Jan. 28, 2010 (GLOBE NEWSWIRE) -- ResCare, Inc. (Nasdaq:RSCR) today announced that it has amended its senior secured credit facility, which was originally scheduled to expire on October 3, 2010. The amendment increases the revolver capacity by $25 million to $275 million. A $50 million “accordion feature” remains in place, which allows the Company to expand its total borrowing capacity to $325 million. The amendment will result in somewhat higher borrowing costs for the Company, but does not significantly alter the existing financial covenants. The amended credit facility expires on July 28, 2013, and is secured by a lien on the assets of the Company and its subsidiaries. The amended credit facility will be used primarily for working capital purposes, letters of credit required under the Company’s insurance programs and for acquisitions. The amendment was led by J.P. Morgan Securities, Inc. and Banc of America Securities, LLC.
Ralph G. Gronefeld, Jr., ResCare president and chief executive officer, remarked, “The amended credit facility gives us greater borrowing capacity to support our continued growth strategy. We view this transaction as a vote of confidence from our bank group, which includes all nine banks from our previous credit facility.”
ResCare, with 35 years of experience helping people reach their highest level of independence, is one of the largest providers of home care to the elderly and persons with disabilities. It also offers residential and support services to people with intellectual and developmental disabilities and provides education, vocational training and job placement for people of all ages and skill levels. Based in Louisville, Kentucky, ResCare and its more than 46,000 dedicated employees serve daily more than 65,000 people in 41 states, Washington, D.C., Puerto Rico and in a number of international locations. For more information about ResCare, please visit the Company’s website at www.rescare.com.
From time to time, ResCare makes forward-looking statements in its public disclosures, including statements relating to expected financial results, revenues that might be expected from new or acquired programs and facilities, its development and acquisition activities, reimbursement under federal and state programs, financing plans, compliance with debt covenants and other risk factors, and various trends favoring privatization of government programs. In ResCare’s filings under the federal securities laws, including its annual, periodic and current reports, the Company identifies important factors that could cause its actual results to differ materially from those anticipated in forward-looking statements. Please refer to the discussion of those factors in the Company’s filed reports. Statements related to expected financial results are as of this date only, and ResCare does not assume any responsibility to update these statements.