ResCare targeting completion of $275 million revolver by month's end

By Sara Rosenberg

New York, Jan. 20 - ResCare Inc. is hoping to close on a new $275 million revolving credit facility (Ba1) by the end of this month, according to a market source.

JPMorgan and Bank of America are the lead banks on the deal.

The revolver is expected to have a pricing grid that can range from around Libor plus 275 basis points to 400 bps based on leverage, the source said.

Proceeds will be used for working capital and general corporate purposes, including funding acquisitions.

The revolver was first launched with a conference call back in December, but then there was a follow-up call last week because of a judgment in New Mexico.

In December, a jury in Albuquerque, N.M., rendered a verdict of about $54 million in damages against ResCare related to an incident that occurred five years ago in one of its group homes in the area.

The company has filed various post-trial motions in connection with the judgment. Oral arguments on the motions are scheduled for February.

ResCare is a Louisville, Ky.-based provider of home care to the elderly and persons with disabilities.

© 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.