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PROVIDENCE HEALTH CARE, INC. ANNOUNCES REFINANCING OF SENIOR BANK DEBT

 PROVIDENCE HEALTH CARE, INC.
 ANNOUNCES REFINANCING OF SENIOR BANK DEBT
 BEREA, Ohio, Sept. 22 /PRNewswire/ -- Lawrence B. Cummings, president of Providence Health Care, Inc. (NASDAQ: PHCI), announced today that the company has refinanced its principal indebtedness and has purchased a warrant for 5.0 percent of the company's stock held by the company's primary lender. In yesterday's closing, a subsidiary of the company borrowed $15,510,000 from an affiliate of Nomura Securities International, Inc., the United States branch of the Japanese securities giant, and repaid the company's indebtedness to The First National Bank of Boston. The company expects to borrow approximately an additional $1,700,000 from Nomura's affiliate in about one week to replace an existing construction loan.
 Cummings stated that the loan closed yesterday was a bridge loan, which the company intends to repay at the closing of permanent financing to be obtained through Nomura. The company believes that the subsequent permanent financing through Nomura will afford greater flexibility than the company's previous financing with The First National Bank of Boston.
 The Boston Corporate Finance Group, an investment banking firm, has advised the company in connection with the refinancing. In addition to Nomura, the Boston Corporate Finance Group has identified several alternative sources of financing for the company. Cummings also stated that several hurdles remain prior to the closing of the permanent Nomura financing. He noted that if the Nomura permanent financing is not completed, the company will have six months to refinance the bridge loan through other sources. Cummings pointed out that if the permanent financing is not under contract by Nov. 14, 1992, the bridge loan will be listed as indebtedness due within one year on the financial statements included in the company's third quarter 10-Q.
 Cummings stated that: "A tremendous benefit to the company of the bridge loan was that it enabled us to purchase a warrant for 5.0 percent of the company's stock from the Bank of Boston at a price of $2.24 per share, compared to the bid price of $3.00 per share as of the repurchase date."
 Cummings also announced that Providence's board of directors has authorized the purchase of up to 175,000 shares of the company's stock in the open market. He stated that the company may utilize this authority to purchase shares from time to time if market conditions are favorable.
 -0- 9/22/92
 /CONTACT: Lawrence B. Cummings, chairman, president and CEO of Providence Health Care, Inc., 216-243-4732/
 (PHCI) CO: Providence Health Care, Inc. ST: Ohio IN: HEA SU:


BM -- CL014 -- 2414 09/22/92 18:08 EDT
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Publication:PR Newswire
Date:Sep 22, 1992
Words:434
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