Resurrection Health/Provena group faces non-compliance with covenants

By Caroline Salls

Pittsburgh, May 13 – The credit group for Resurrection Health Care and Provena Health’s revenue bonds are not expected to be in compliance with a historical debt service coverage ratio for the year ended Dec. 31, according to a notice released by master trustee Bank of New York Mellon Trust Co., NA.

Under the master indenture, an event of default will occur if the ratio is less than 1 to 1 for the reported fiscal year.

The trustee said the credit group is also not in compliance with continuing covenant agreements contained in its term loan agreements with Bank of America, NA and PNC Bank, NA and its revolving credit agreement with Bank of America because it failed to deliver statements of operations, changes in net assets and financial position of the corporation and its member affiliates, failure to deliver capital budgets, failure to deliver an officer’s certificate related to the delivery of financial reports and because of a decline in unrestricted net assets.

The master indenture gives the group 30 days to comply with the covenants after written notice of default is received.

The trustee said it retained Carter Ledyard & Milburn LLP to represent it in connection with the defaults.

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