Harborside obtains credit facility amendment.

Boston-based Harborside Healthcare Corporation, which operates 50 SNFs with 6,120 beds, has obtained approval from its lenders to amend its $250 million senior credit facility.

The company previously announced that it expected financial results for the first quarter of fiscal 1999 would cause it to be out of compliance with certain financial covenants. Harborside attributed its expected lower first quarter financial results to transitional difficulties associated with the implementation of PPS, which became effective at all of its facilities on January 1.

Under the terms of the amendment, borrowings are limited to an aggregate of $58.5 million. If the company's operating performance returns to the level of compliance contemplated by the original covenants, it can access the entire $250 million facility.

At the close of business on March 30, total outstanding borrowings under the facility (excluding letters of credit) were $33.5 million.