Extendicare Inc. Enters Into New Senior Secured Credit Facility
MARKHAM, Ontario, Nov. 08, 2024 (GLOBE NEWSWIRE) —
Extendicare Inc. (“Extendicare” or the “Company”) (TSX: EXE) announced today that it has secured a new senior secured credit facility for $275.0 million with a syndicate of Canadian chartered banks. The facility, which has a term of three years, includes a revolving credit facility for up to $145.0 million (the “Revolving Facility”) and a delayed draw term loan facility for up to $130.0 million (the “Delayed Draw Facility”).
Details of the Credit Facility
The Revolving Facility will be used for working capital, general corporate purposes, capital expenditures, and potential acquisitions. This facility replaces the Company’s previous demand credit facilities of $112.3 million. The Delayed Draw Facility will be available until April 30, 2025, to repay the Company’s outstanding $126.5 million of 5.00% convertible subordinated debentures due in April 2025. Extendicare also has the option to redeem the 2025 Debentures before their maturity date.
This new credit facility provides Extendicare with additional financial flexibility and liquidity to support its growth strategies and ongoing operations.
How this will affect individual stakeholders:
For Extendicare shareholders, this new credit facility could indicate a positive outlook for the company’s future growth and stability. It may also signal management’s confidence in the business’s ability to generate returns for investors.
How this will affect the world:
While Extendicare’s new credit facility primarily impacts the company and its stakeholders, a successful utilization of the funds could result in increased job creation, economic growth, and potential industry innovations. As Extendicare continues to expand and enhance its services, it may also contribute to the overall improvement of healthcare offerings in the global market.
Conclusion
In conclusion, Extendicare’s new senior secured credit facility represents a strategic move towards strengthening the company’s financial position and supporting its future endeavors. With increased flexibility and resources at its disposal, Extendicare is well-equipped to pursue growth opportunities and deliver value to its stakeholders.
