Kindred Healthcare amends revolver, increasing size, extending tenor, cutting pricing

By Sara Rosenberg

New York, July 18 - Kindred Healthcare, Inc. amended its revolving credit facility, increasing the size to $500 million from $400 million, extending the maturity by three years until July 2012 and reducing pricing by 75 basis points, according to a news release.

The revolver also establishes permitted acquisitions and certain investments by the company at $500 million in the aggregate and allows for up to $150 million of certain restricted payments, including, among other things, the repurchase of common stock and payment of cash dividends.

Prior to the amendment, the company's unused permitted acquisition limit approximated $216 million and the remaining permitted restricted payment amount was about $50 million.

In addition, the amendment allows for the spin-off of the company's institutional pharmacy business.

In connection with the spin-off, which is expected to be completed by July 31, the company anticipates receiving about $125 million, which will be used initially to repay revolver borrowings.

The revolver has a $100 million accordion feature.

Kindred Healthcare is a Louisville, Ky.-based health care services company.

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