| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Sun Healthcare Group, Inc. > News item |
Sun Healthcare obtains $75 million revolver
By Sara Rosenberg
New York, Sept. 8 - Sun Healthcare Group Inc. closed on a new two-year $75 million senior secured revolver. CapitalSource Finance LLC is collateral agent on the deal.
The new revolver refinanced the company's previous revolver, which the company had defaulted on, with Heller Healthcare Finance Inc. as collateral agent and Citicorp USA Inc. as administrative agent. Those lenders have been paid in full, according to a filing with the Securities and Exchange Commission.
Covenants in the new credit agreement are based on the company's current operations, as compared to the covenants in the previous agreement, which were established prior to Sun's ongoing restructuring efforts.
Liquidity has been increased by about $20 million with the successful completion of the new loan primarily due to the release of reserves previously imposed by the company's former senior lenders.
Proceeds will be used to fund working capital and other corporate obligations.
"This new financing strengthens Sun as we continue with our restructuring," said Richard K. Matros, chairman and chief executive officer, in the filing. "We are pleased with the confidence that CapitalSource has placed in our ability to conclude our restructuring and become a viable long-term care provider for the future. The liquidity afforded by our refinancing permits the company to consider a broader range of options to resolve the remaining issues that challenge Sun.
"The financial covenants that were negotiated with CapitalSource are a more realistic set of requirements for the restructuring enterprise. We are not through with our restructuring yet, but we are hopeful that with this new lending relationship, we move one step closer to successfully completing those efforts," Matros concluded.
Sun is an Irvine, Calif. owner of healthcare providers.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.