ResCare amends loan, changing all financial covenants

By Sara Rosenberg

New York, Nov. 14 - ResCare Inc. completed an amendment to its $80 million credit facility, which modifies each of the financial covenants under the bank agreement. In return for the amendment, the interest rate will increase by 25 basis points.

"We are extremely pleased with the successful completion and the favorable terms of this amendment. Completing this agreement confirms the solid financial condition of our company, our future prospects and the strong relationship with our banking partners. We do not expect the increase in interest rates to have a material effect on our consolidated results of operations. The amendment also contains a waiver of non-compliance with our interest coverage covenant at September 30, 2002," said Ronald G. Geary, chairman, president and chief executive officer, in a news release.

The company has not borrowed under the facility since it was obtained in November 2001, but there are $43 million in standby letters of credit under the facility.

ResCare is a Louisville, Ky. provider of services to persons with developmental disabilities and people with special needs.

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