OKLAHOMA CITY, July 1, 2014 (GLOBE NEWSWIRE) — Foundation HealthCare, Inc. (OTC Markets:FDNH), which focuses on the development and management of surgical hospitals and related ancillary services, announced today the successful completion of a new $27.5 million term loan as well as a $2.5 million revolving credit facility. The seven-year term loan is priced at 30-day LIBOR plus 4.25% and the revolving credit facility is priced at 30-day LIBOR plus 3.75%. The actual initial interest rate of the loan is LIBOR plus 4.25%.
Bank SNB was the lead agent on the transaction with Texas Capital Bank (TCB) acting as co-manager. The new financing structure will result in cash flow savings of approximately $2M annually.
“We are pleased to have successfully completed the refinancing of our balance sheet. The new debt structure will provide us with additional flexibility and liquidity, which will enable us to take full advantage of the opportunities in the market,” commented Stanton Nelson, Chief Executive Officer of Foundation HealthCare.
About Foundation HealthCare
Headquartered in Oklahoma City, Okla., Foundation HealthCare, Inc. (OTCQB:FDNH) focuses on the development and management of surgical hospitals and the inclusion of ancillary service lines. These additional service lines, such as hyperbarics, sleep labs, intraoperative monitoring, imaging and robotic surgery, truly make the Foundation specialty hospital environment unique.
The Company is also an industry leading ASC management and development company focused on partnering with physicians and employees to create an outstanding patient experience, while maximizing partner and shareholder value. The Company is a leader in offering turnkey management and development solutions for physician partners, as well as creating an optimal experience for the patients we serve. For more information, visit www.fdnh.com.
Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based on the Company’s current expectations, forecasts and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the Company’s expectations, forecasts and assumptions. These risks and uncertainties include risks and uncertainties not in the control of the Company, including, without limitation, the risk that Company will be unable to refinance a majority of its debt, maintain enough liquidity to execute its business plan, continue as a going concern and other risks including those enumerated and described in the Company’s filings with the Securities and Exchange Commission, which filings are available on the SEC’s website at www.sec.gov. Unless otherwise required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Foundation HealthCare, Inc.
Stanton Nelson, Chief Executive Officer