LHC gets $225 million five-year secured revolver at Libor plus 200 bps

By Angela McDaniels

Tacoma, Wash., June 23 – LHC Group, Inc. entered into a credit agreement on Wednesday that provides for a $225 million senior secured revolving line of credit due June 28, 2019, according to an 8-K filing with the Securities and Exchange Commission.

Capital One, NA is the administrative agent, bookrunner and arranger. JPMorgan Chase Bank, NA, Regions Bank and Compass Bank are the co-syndication agents. Whitney Bank is a lender.

The revolver has a $15 million sublimit for letters of credit and a $15 million sublimit for swingline loans.

The initial interest rate is Libor plus 200 basis points, and the initial commitment fee is 25 bps.

The margin over Libor ranges from 175 bps to 250 bps, and the commitment fee ranges from 22.5 bps to 37.5 bps. Both depend on the company’s consolidated leverage ratio.

The revolver is guaranteed by all of the company’s direct and indirect wholly owned subsidiaries, and the company has pledged its equity interests in each of its wholly owned subsidiaries and its equity interests in its joint venture companies.

The revolver borrowings may be used to finance the working capital needs, and for general corporate purposes, of the company and its subsidiaries.

The credit agreement replaces the company’s third amended and restated credit agreement dated Aug. 31, 2012.

LHC Group is a Lafayette, La.-based provider of post-acute care.

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