Kindred Healthcare (NYSE: KND) announced this week it is shoring up its lending channels in order to improve its financial flexibility with an eye toward future acquisitions.
The company has amended its $750 million senior secured asset-based revolving credit line and its $785.5 million senior secured term loan facility, including an elimination of annual and cumulative limitations on acquisitions.
The amendments will better position the company for ongoing acquisitions including those involving home health agencies, Kindred’s executives say.
“The improved financial flexibility provided by our revised Credit Agreements adds further momentum to our strategy of expanding our continuum of post-acute care services in our key Integrated Care Markets,” said Kindred CEO Paul J. Diaz. “This enhanced credit capacity, along with the expected proceeds from our planned asset sales, creates significant capital resources to expand our Integrated Care Markets and acquire additional home health and hospice operations, while still returning capital to our shareholders through a dividend.
Kindred has recently acquired several home health agencies and through the recent sale of seven nursing centers has created a transitional care division in an effort to bolster its post-acute care offerings.
Written by Elizabeth Ecker