Province Healthcare amends loan; changing covenants, increasing pricing

By Sara Rosenberg

New York, March 31 - Province Healthcare Co. amended its $250 million credit facility, increasing the total debt to EBITDA covenant from 3.75 to 4.25 for fiscal 2003 and to 4.00 for fiscal 2004, decreasing the senior debt to EBITDA covenant to 2.00 from 2.50 for the term of the agreement and increasing the interest rate by approximately 50 basis points.

The total debt to EBITDA covenant will return to 3.75 for fiscal 2005.

At Dec. 31, 2002, the total debt to EBITDA ratio was 3.71 and the senior debt to EBITDA ratio was 1.15.

In conjunction with the amendment, the company repaid $20 million under the credit facility, bringing total outstanding bank debt to $114.3 million.

"The additional repayment comes as the result of our continued strong cash flow from operations," said Christopher T. Hannon, senior vice president and chief financial officer, in a news release. "Province currently maintains approximately $132.1 million in unused capacity to fund acquisitions and capital expenditures. This amendment will provide Province with the financial flexibility to fund our operating strategy over the next three years. Our bank group has been extremely supportive and demonstrated tremendous confidence in our operating plan by approving the amendment with a 100% vote."

Province Healthcare is a Brentwood, Tenn. provider of health care services.

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