ResCare obtains new $175 revolver

New York, Oct. 3 - ResCare, Inc. said it amended and restated its revolving credit facility.

The new facility is $175 million in size and has an accordion feature that allows an increase to $225 million.

Maturity is Oct. 3, 2010.

J.P. Morgan Securities Inc. is lead arranger and bookrunner and JPMorgan Chase Bank, NA is administrative agent.

Proceeds will be used for working capital and letters of credit.

ResCare also repaid its outstanding term loan, with $28 million outstanding as of June 30, and refinanced its old 10 5/8% senior notes with new 7¾% senior notes due 2013.

"The successful refinancing is a tribute to our continued strong operating performance across all divisions," said chairman, president and chief executive officer Ronald G. Geary in a news release. "These transactions are part of our ongoing effort to strengthen our balance sheet, lower our interest costs and enhance our capital structure. The interest savings going forward will significantly enhance our future free cash flow position."

ResCare is a Louisville, Ky., provider of residential, therapeutic, job training and educational supports to people with developmental or other disabilities, to youth with special needs and to adults who are experiencing barriers to employment.

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