ResCare gets commitment for $135 million credit facility

By Sara Rosenberg

New York, Nov. 6 - ResCare Inc. received a commitment for a $135 million senior secured credit facility consisting of a $100 million revolver and a $35 million term loan, according to a news release.

Proceeds from the facility combined with cash on hand will be used to repay existing subordinated debt, including $87 million of convertible subordinated notes due December 2004.

"This anticipated senior credit facility will substantially strengthen the balance sheet of our company. Also, it better positions the company to take full advantage of a gradually improving economy. In addition, the willingness of lenders to invest in ResCare, we believe, confirms our business plan and the strength of our franchise," said Ronald G. Geary, chairman, president and chief executive officer, in the release.

ResCare is a Louisville, Ky., provider of residential, therapeutic, job training, educational and support services to populations with special needs.

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