Five Star Quality Care, Inc. (NYSE Amex: FVE) announced that it has entered into a new $35 million revolving credit facility. The facility will require interest payments of LIBOR (with a floor of 200 basis points) plus 400 basis points and will be secured by FVE’s accounts receivable and related collateral. This new credit facility also contains certain covenants, such as maintenance of collateral and certain financial ratios and is set to mature March 18, 2013.
This new credit facility replaces FVE’s existing $40 million credit facility, which had a maturity date of May 8, 2010. Drawings under the existing credit facility required interest payments at LIBOR plus 200 basis points.