Skilled Healthcare Group, Inc. (NYSE:SKH) announced last week that it has entered into an amendment to extend the maturity of the revolving loan commitments under its second amended and restated first lien credit agreement from June 15, 2010 to June 15, 2012. Based upon the revised loan commitments, the Company’s revolving line of credit will have a capacity of $135 million through June 15, 2010, and will reduce to $124 million, thereafter, until its maturity on June 15, 2012. The revolving loan will maintain current interest rates of LIBOR plus 2.75% or prime plus 1.75%, and, as of March 31, 2009, it had an outstanding balance of $93 million.
Boyd Hendrickson, Chairman and CEO, noted, “We are pleased to have extended the revolving loan for another two years which we believe provides the Company with sufficient liquidity and low interest rate spreads. Given the current capital environment, we believe this is a significant accomplishment for the Company and a strong statement of confidence from our lenders. We believe that this capital will enable us to further enhance stockholder value and continue our growth strategy. Although we are incurring upfront fees and expenses totaling approximately $8 million on the extension, we are maintaining existing 2009 guidance that we provided in February 2009, in conjunction with our 2008 results.”
For the full details in the company’s 8-K filing, click here.