Apria Healthcare restates ABL facility, increasing it to $250 million

By Angela McDaniels

Tacoma, Wash., Aug. 10 - Apria Healthcare Group Inc. entered into an amended and restated senior secured asset-based revolving credit facility on Monday, according to the company's 10-Q filing for the second quarter filed with the Securities and Exchange Commission on Wednesday.

The maximum borrowing amount was increased to $250 million from $150 million.

The maturity date is the earlier of (a) five years and (b) 90 days prior to the earliest maturity of the company's outstanding 11¼% senior secured notes due 2014 and 12 3/8% senior secured notes due 2014, which become callable on Nov. 1.

The initial interest rate is Libor plus 225 basis points. The spread ranges from 200 bps to 250 bps, depending on average excess availability. In addition, the interest rate for any quarter will step down by 25 bps if the company achieves a consolidated fixed charge coverage ratio greater than 1.75 to 1.00.

The commitment fee ranges from 37.5 bps to 50 bps.

Bank of America, NA is the administrative agent. Bank of America Merrill Lynch and Barclays Capital Inc. are bookrunners and the joint lead arrangers. Barclays Bank plc is the documentation agent.

The borrowing base at any time is equal to the sum of:

• 85% of eligible receivables;

• The least of (a) 85% of eligible self-pay accounts, (b) 10% of the borrowing base, (c) $25 million and (d) the aggregate amount of self-pay accounts collected within the previous 90 days;

• The lesser of (a) 85% of eligible accounts invoiced but unpaid for more than 180 days but less than 360 days and (b) 10% of eligible accounts invoiced but unpaid for 180 days or less; and

• The lesser of (a) 85% of the net orderly liquidation value of eligible inventory and (b) $35 million.

The facility includes letter-of-credit and swingline loan sub-facilities.

As of Monday, there were no outstanding borrowings under the ABL facility, outstanding letters of credit totaled $21.1 million, and additional availability under the ABL facility, subject to the borrowing base, was $228.9 million.

Apria provides home health-care products and services. It is based in Lake Forest, Calif.

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