ATC Healthcare, Inc. Announces Improved Credit Facility.Business Editors & Health/Medical Writers LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Nov. 12, 2002 ATC ATC Air Traffic Control ATC Average Total Cost ATC Certified Athletic Trainer ATC At the Center (Hartford, Maine retreat center) ATC Applied Technology Council ATC All Things Considered Healthcare, Inc. (AMEX AMEX See: American Stock Exchange :AHN AHN Athens, GA, USA (Airport Code) AHN Army Health Nurse (US Army) AHN Aetna Hispanic Network AHN Allied Health Network AHN Ad Hoc Network ): -- Acquisition line increased to $5 million -- Revolver increased to $35 million ATC Healthcare, Inc. (AMEX:AHN), one of the nation's largest medical staffing providers, today announced that it has extended its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility (the "Facility") with Healthcare Finance Group, Inc. ("HFG HFG Home Friendship Groups (Christian-based small group ministry) HFG Hand-Foot-Genital syndrome HFG Harmonic Frequency Generator HFG Hinteregger, Fukai and Gilson Solar EUV Model "). The new facility consists of a $5 million term facility for business acquisitions and growth. This is an increase of $3 million over the line it established in June, 2002. In addition, ATC has increased by $7.5 million, its revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. under which the company can now borrow up to an aggregate amount of $35 million, which subject to certain conditions, can go as high as $50 million. These obligations will be secured by ATC accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and other collateral. The proceeds will be used for working capital purposes, acquisitions, and growth. "ATC has a business model with three main strategies: Continue to strengthen our existing network of offices with nation-wide recruiting and enhanced benefits; grow through acquisitions and opening of new offices; and increase the size and scope of our travel nurse business. This expanded bank facility puts us on track to pursue these goals," said David Savitsky, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ATC. "Our improved facility, which extends through October, 2005, will increase available cash for operations and for our acquisition model. We have had an excellent working relationship with HFG and appreciate the confidence they have in ATC," said Alan Levy, CFO See Chief Financial Officer. of ATC. Isaac Soleimani, Chairman and CEO of HFG stated, "ATC exemplifies the type of client we value: a well managed, growing company whose growth we can assist through provision of successively higher levels of working capital, terms loans, acquisition and other financings." ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics and other health care facilities with 70 locations in 29 states. ATC provides supplemental staffing, outsourcing and human resources solutions to hospitals, nursing homes, medical and research facilities and industry. Drawing from a pool of over 15,000 healthcare professionals spanning more than 50 specialties, the Company supplies both clinical and non-clinical personnel for short-term, long-term, and "traveling" contract assignments. To learn more about the company's services, visit their web site at www.atchealthcare.com. Healthcare Finance Group Inc. is a specialty finance company, catering exclusively to the healthcare industry. Its management team has over 50 years experience in healthcare finance, and has completed several hundred million dollars of healthcare finance transactions. With offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Dallas, Atlanta and Chicago, HFG offers secured revolving credit facilities and term loans for acquisitions, major expansions or capital purchases and general working capital, or to replace an existing financing with improved terms and flexibility. This press release contains forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in ATC Healthcare, Inc. Annual Report on Form 10-K for the year ended February 28, 2002 as filed with the Securities and Exchange Commission on June 10, 2002 and Quarterly Report on Form 10-Q for the quarter ended August 31, 2002 as filed with the Securities and Exchange Commission on October 15, 2002. |
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