Extendicare Announces New $275 Million Senior Secured Credit Facility
MARKHAM, Ontario, Nov. 08, 2024 (GLOBE NEWSWIRE) — Extendicare Inc. (“Extendicare” or the “Company”) (TSX: EXE) today announced that it has entered into a new senior secured credit facility for $275.0 million (the “Senior Secured Credit Facility”) with a syndicate of Canadian chartered banks, for a term of three years. The Senior Secured Credit Facility consists of a revolving credit facility for up to $145.0 million (the “Revolving Facility”), which replaces the Company’s former demand credit facilities of $112.3 million, and a delayed draw term loan facility in an amount up to $130.0 million (the “Delayed Draw Facility”). The Revolving Facility is available for working capital and general corporate purposes, including capital expenditures and acquisitions. The Delayed Draw Facility is available until April 30, 2025 to repay the Company’s outstanding $126.5 million of 5.00% convertible subordinated debentures due April 30, 2025 (the “2025 Debentures”). Extendicare may redeem the 2025 Debentures before their maturity date in April 2025.
“We greatly appreciate the support of our new lending group and their commitment to Extendicare. The new credit facilities provide additional flexibility in our capital structure to support our growth objectives in our home health care and managed services businesses and successfully execute on our long-term care redevelopment program,” said David Bacon, Senior Vice President and Chief Financial Officer.
The Senior Secured Credit Facility includes provisions for consecutive one-year extensions of the initial three-year term, and the ability to increase the Revolving Facility by up to $50.0 million, subject in each case to satisfying certain conditions and lender approval. The Senior Secured Credit Facility is secured by a portfolio of LTC homes in Ontario and is subject to customary financial and non-financial covenants and other terms. Borrowings under the Senior Secured Credit Facility can take place by way of direct borrowings at either the prime rate or the Canadian Overnight Repo Rate Average (“CORRA”) plus an applicable margin, or through letters of credit.
Canadian Imperial Bank of Commerce (“CIBC”) is the Administrative Agent, while CIBC and Bank of Montreal are Joint Bookrunners and Joint Lead Arrangers. The lending syndicate consists of CIBC, Bank of Montreal, Royal Bank of Canada, The Toronto-Dominion Bank and National Bank of Canada. Extendicare was represented by Torys LLP and lenders were represented by McCarthy Tétrault LLP.
About Extendicare
Extendicare is a leading provider of care and services for seniors across Canada, operating under the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network brands. We are committed to delivering quality care to meet the needs of a growing seniors’ population, inspired by our mission to provide people with the care they need, wherever they call home. We operate a network of 123 long-term care homes (52 owned, 71 under management contracts), deliver approximately 10.5 million hours of home health care services annually, and provide group purchasing services to third parties representing approximately 140,900 beds across Canada. Extendicare proudly employs approximately 22,000 qualified, highly trained and dedicated team members who are passionate about providing high-quality care and services to help people live better.
Extendicare contact:
David Bacon, Senior Vice President and Chief Financial Officer
T: (905) 470-4000
E: david.bacon@extendicare.com
www.extendicare.com
