Res-Care starts consent solicitation for 10 5/8% notes

New York, Nov. 21 - Res-Care Inc. said it has begun a solicitation of holders of its 10 5/8% senior notes due 2008 to obtain consents to amendments to the indenture governing the notes that would allow the company to undertake transactions to strengthen its balance sheet and improve its financial flexibility.

The proposed amendments require the consent of holders of at least a majority of the $150 million principal amount of outstanding notes.

As previously announced, Res-Care is proposing to replace its existing $80 million senior secured credit facility with a new $135 million senior secured credit facility, which will initially include a $100 million revolving credit facility and a $35 million term loan and redeeming, primarily with cash on hand, the outstanding $87 million principal amount of its 6% convertible subordinated notes due 2004 before they mature in December 2004.

The Louisville, Ky., provider of services to people with special needs will pay a fee of $2.50 per $1,000 to holders who consent to the amendments.

The solicitation runs through 5 p.m. ET Dec. 8.

UBS Investment Bank (888 722-9555 ext. 4210 or collect at 203 719-4210) is the solicitation agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.