$135 Million Bank Facility and Redemption of 6% Notes Position ResCare for Growth in 2004.Business Editors/Health/Medical Writers LOUISVILLE, Ky.--(BUSINESS WIRE)--Jan. 14, 2004 ResCare (NASDAQ/NM:RSCR RSCR Railways (Safety Case) Regulations (UK) ), the nation's leading provider of services to persons with developmental and other disabilities and people with special needs, today announced that it had closed its previously announced $135 million senior credit facility and completed the redemption of its 6% Convertible Subordinated Notes due December 2004 ("6% Notes") totaling $87 million. Bryan Shaul, ResCare's executive vice president of finance and administration and chief financial officer, said, "We are pleased to have completed these two important transactions, which strengthen our balance sheet and the Company's financial base. We believe that we are well positioned for 2004, and we look forward to building on the progress we made in 2003." After completing both of these transactions, the Company has no significant debt maturities until 2008 and has approximately $60 million of available funding for working capital and other growth initiatives. Bank One Capital Markets led the syndication for the new bank facility, which includes a $100 million revolver and a $35 million term loan. The revolver includes a $65 million sub-limit for Letters of Credit. The bank facility was closed on December 31, 2003. In December, the Company formally issued its notice to call its 6% notes, which were redeemed on January 12, 2004. ResCare funded the redemption on December 31, 2003, with $22 million from the term loan and the remainder from its own cash. The balance of the term loan facility is undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely . The Company will take a charge of approximately $2.5 million in the fourth quarter of 2003 related to the refinancing Refinancing An extension and/or increase in amount of existing debt. and redemption, including write-off unamortized debt issuance costs, premiums paid to holders of the 6% Convertible Subordinated Notes for early redemption and costs of the consent. Founded in 1974, ResCare offers services to some 32,000 people in 33 states, Washington, D.C., Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. and Canada. ResCare is a human service company that provides residential, therapeutic, job training and educational supports to people with developmental or other disabilities, to youth with special needs and to adults who are experiencing barriers to employment. The Company is based in Louisville, KY. More information about ResCare is available on the Company's web site at http://www.rescare.com. The Company from time to time makes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in its public disclosures, including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's expected financial results, revenues that might be expected from new or acquired programs and facilities, other statements regarding development and acquisition activities, statements regarding reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. under federal and state programs and statements regarding various trends favoring downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing , de-institutionalization and privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned of government programs. In the Company's filings under the federal securities laws, including its annual, periodic and current reports, the Company identifies important factors that could cause the Company's results to differ materially from those contained in such forward-looking statements. We refer you to the discussion of those factors in our filed reports. |
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