America Service Group Announces Closing of $60 Million Revolving Credit and Term Loan Agreement.Business Editors BRENTWOOD, Tenn.--(BUSINESS WIRE)--Oct. 31, 2002 America Service Group Inc. (Nasdaq:ASGR ASGR America Service Group Inc. ASGR Armed Services Graves Registration Office ) today announced that it has closed a $60 million 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. and Term Loan Agreement pursuant to a commitment from CapitalSource Finance LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control announced on October 23, 2002. Immediately upon closing, $50 million was available under the new Revolving Credit and Term Loan Agreement, and, upon the addition of a participant in the facility, the remaining $10 million becomes available. The Company used an initial advance pursuant to the new Revolving Credit and Term Loan Agreement to retire all indebtedness outstanding under its secured credit facility with Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , N.A., as Agent for the Lenders, including itself, AmSouth Bank, Harris Trust and Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , and Comerica Bank. Commenting on the closing, Michael W. Taylor, the Company's senior vice president and chief financial officer, said, "Refinancing our former debt facility, which was scheduled to expire on April 1, 2003, is a significant accomplishment for the Company. The closing of this new three-year facility will save the Company approximately $250,000 annually in interest expense based on current debt levels and provides additional debt capacity for the Company. Also of note is that under our former credit agreement, we would have been required to issue a warrant to the previous lender group to purchase 5% of our common stock unless we refinanced the secured credit facility before year-end. Today's closing means we have eliminated this potential dilutive event for our stockholders." America Service Group Inc., based in Brentwood, Tennessee Brentwood is a city in Williamson County, Tennessee, United States. The population was 23,445 as of the U.S. Census Bureau's 2000 census, and as of 2007, Brentwood's population has increased to over 30,000. Brentwood is an affluent Nashville suburb. , is the leading provider of correctional healthcare services in the United States. America Service Group Inc., through its subsidiaries, provides a wide range of healthcare and pharmacy programs to government agencies for the medical care of inmates. This press release may contain "forward-looking" statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. As such, they involve risk and uncertainty that actual results may differ materially from those projected in the forward-looking statements. A discussion of the important factors and assumptions regarding the statements and risks involved is contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this release. The Company assumes no obligations to update or revise them or provide reasons why actual results may differ. |
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