Providence Service might use new loan to repay 6.5% convertibles

By Angela McDaniels

Tacoma, Wash., March 14 - Providence Service Corp. may use the proceeds of a new credit facility to repay its 6.5% convertible senior subordinated notes due 2014, according to a company news release.

The convertibles were issued in a private placement on Nov. 13, 2007.

The new credit facility includes a $100 million five-year term loan and a $40 million five-year revolving credit facility.

Some of the proceeds were used to refinance the company's existing credit facility. The remaining proceeds may also be used to fund working capital requirements, to make capital expenditures such as acquisitions and for other general corporate purposes.

Tucson-based Providence Service provides and manages government-sponsored social services.

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