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VCA Antech repays $45 million notes using $25 million term loan add-on, cash
New York, Oct. 24 -VCA Antech, Inc. said it repaid $45 million of its notes using a $25 million add-on to its term loan C and $25.2 million of cash on hand.
The Los Angeles veterinary center operator said the securities repaid were $30 million of its 15.5% senior notes and all $15 million of its outstanding 13.5% senior subordinated notes.
In addition to the principal amount, VCA Antech also paid $4.8 million of prepayment premium and transaction costs and incurred a $4.8 million non-cash charge to write off unamortized discount and deferred financing costs.
VCA Antech said the reduction in debt and lower effective interest rate will save $5.0 million a year in borrowing costs.
"I am pleased that the strength of our operations has enabled us to make some significant and beneficial changes to our capital structure," said Bob Antin, chairman and chief executive officer, in a news release. "This refinancing, together with the refinancing we successfully completed in August 2002 that reduced the interest rate on our senior credit facility, is a positive reflection of our continued strong performance as well as the outstanding relationship that we have with our bank group."
The $25 million addition increases VCA Antech's term loan C to $167.7 million. Lead banks for the facility are Goldman Sachs and Wells Fargo Bank and the interest rate is Libor plus 300 basis points.
In addition to the bank borrowings, the company has $170 million of 9.875% senior subordinated notes and $36.7 million of 15.5% senior notes outstanding following the transaction.
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