Amedisys gets $225 million loans at Libor plus 250 bps, amends notes

By Susanna Moon

Chicago, Oct. 31 - Amedisys, Inc. released more details of its $225 million five-year unsecured credit facility led by J.P. Morgan Securities LLC and Bank of America Merrill Lynch as bookrunners in an 8-K filing with the Securities and Exchange Commission.

The facility consists of a $165 million five-year revolving credit facility and a $60 million five-year amortizing term loan, as previously announced on Oct. 29. The facility closed Oct. 26.

Interest on the loans will be Libor plus 250 basis points, with a spread ranging from 225 bps to 275 bps based on leverage.

Bank of Texas, Compass Bank, Fifth Third Bank and RBS Citizens, NA are documentation agents. Bank of America, NA is the syndication agent. JPMorgan Chase Bank, NA is the administrative agent.

There is a sublimit of $15 million for the swingline facility and commitments for up to $50 million in letters of credit.

The company may increase the total loan amount under the facilities by up to $100 million with lender commitments.

Proceeds of the term loan, along with cash, were used to pay off Amedisys' term loan under its prior credit agreement with a principal balance of $15 million and a portion of its senior notes with a principal balance of $60 million.

The term loan matures on Oct. 26, 2017 and will amortize beginning Dec. 31 in 20 equal quarterly installments of $3 million, with the remaining balance due upon maturity.

The revolver, also due Oct. 26, 2017, may be used to provide ongoing working capital and for other general corporate purposes.

The credit agreement requires maintaining a leverage ratio of total debt to EBITDA and a fixed-charge coverage ratio.

The facilities are guaranteed by all material wholly owned subsidiaries of the company.

Note purchase agreement

The company also amended its note purchase agreement on Oct. 26 for its $35 million principal amount of 6.07% series A senior notes due March 25, 2013, $30 million principal amount of 6.28% series B senior notes due March 25, 2014 and $35 million principal amount of 6.49% series C senior notes due March 25, 2015.

The amendment and the waiver collectively permit the company to repay $15 million of the series A notes, $10 million of the series B notes and $35 million of the series C notes before maturity. A prepayment fee of $3.6 million was made in connection with the repayment of the notes.

The amendment also generally conforms the note purchase agreement covenants to the covenants included in the credit agreement.

As amended, the note purchase agreement requires the company to provide guaranties from wholly owned subsidiaries that represent not less than 95% of the company's consolidated net revenues and adjusted EBITDA from all wholly owned subsidiaries and provide guarantees from subsidiaries that represent not less than 70% of consolidated adjusted EBITDA.

Amedisys is a home health and hospice care company based in Baton Rouge, La.

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