Extendicare Secures $275 Million Credit Facility for Growth

Extendicare Secures Significant Credit Facility

Extendicare Inc. is excited to announce its new senior secured credit facility amounting to $275 million. This facility, established in collaboration with a group of respected Canadian chartered banks, will serve as a foundational element for the company’s ongoing growth and operational strategy.

Details of the Credit Facility

The new financial agreement includes a revolving credit facility totaling up to $145 million, effectively replacing the company's earlier demand credit facilities of $112.3 million. Additionally, it features a delayed draw term loan facility of up to $130 million, showcasing the company’s proactive approach to its financial management. This strategic move ensures that Extendicare can effectively manage working capital and pursue its corporate goals, including essential capital expenditures and acquisitions.

Support for Long-term Health Initiatives

David Bacon, Senior Vice President and Chief Financial Officer of Extendicare, emphasized the importance of this credit facility in supporting the company's growth objectives within its home health care and managed services sectors. "We greatly appreciate the support of our new lending group and their commitment to Extendicare. The new credit facilities provide additional flexibility in our capital structure to support our growth objectives in our home health care and managed services businesses and successfully execute on our long-term care redevelopment program,” Bacon commented.

Flexible Terms and Conditions

The Senior Secured Credit Facility offers potential extensions of the initial three-year term by an additional year. Furthermore, it allows for an increase in the revolving credit facility by up to $50 million, contingent on specific conditions and lender approval. The structure includes securing the facility with a portfolio of long-term care homes in Ontario and is governed by a comprehensive set of customary financial and non-financial covenants.

The Importance of Reliable Financing

With the new financing in place, Extendicare is poised to enhance its capabilities and service delivery. Borrowings can be executed via direct borrowing options at either the prime rate or the Canadian Overnight Repo Rate Average plus a company-specified margin. This finance structure not only supports day-to-day operations but also strengthens the company’s ability to invest in its future.

Partnership with Leading Financial Institutions

The administrative role of the facility is managed by Canadian Imperial Bank of Commerce, together with leading banks such as Bank of Montreal, Royal Bank of Canada, The Toronto-Dominion Bank, and National Bank of Canada. The selection of this lending syndicate reflects the robust reputation and financial strength of Extendicare.

Extendicare's Commitment to Quality Care

As a leading provider of care and services for seniors across Canada, Extendicare operates under multiple recognized brands, including Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network. The company is dedicated to delivering high-quality services that cater to the needs of the growing senior population. Operating 123 long-term care homes and providing over 10.5 million hours of home health care annually, Extendicare is committed to enhancing the quality of life for its clients.

Team of Dedicated Professionals

Employing around 22,000 qualified and passionate professionals, Extendicare strives to offer exceptional care to seniors. With a focus on compassion and professionalism, the team is motivated to support individuals in living healthier and better lives.

Get in Touch with Extendicare

For further information about the company's initiatives and services, you can reach out to:

David Bacon, Senior Vice President and Chief Financial Officer
T: (905) 470-4000
E: david.bacon@extendicare.com
Visit: www.extendicare.com

Frequently Asked Questions

What is the purpose of Extendicare's new credit facility?

The credit facility aims to provide financial flexibility and support growth initiatives in home health care and managed services.

Who are the key financial partners in the new facility?

The lending syndicate includes prominent banks such as CIBC, Bank of Montreal, Royal Bank of Canada, The Toronto-Dominion Bank, and National Bank of Canada.

How does the revolving credit facility work?

The Revolving Facility offers immediate cash availability for operational needs and can be drawn upon up to $145 million.

What are the benefits of the delayed draw term loan facility?

This facility allows Extendicare to manage its outstanding debentures effectively, facilitating repayment while ensuring operational funding.

How does Extendicare ensure quality in its services?

Extendicare employs a highly trained workforce dedicated to providing compassionate and effective care to seniors across Canada.

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