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Roto-Rooter to use credit facility and/or subordinated debt, equity financing for Vitas acquisition
By Sara Rosenberg
New York, Dec. 19 - Roto-Rooter Inc. has received commitments for a proposed senior credit facility and is looking into obtaining subordinated debt and/or equity financing to help fund the purchase of Vitas Healthcare Corp.'s outstanding common shares that are not already owned by Roto-Rooter, according to a filing with the Securities and Exchange Commission.
The transaction will cost Roto-Rooter about $410 million in cash, including the refinancing of about $75 million of existing Vitas debt and the cash payment to Vitas shareholders of $30 per share. Roto-Rooter already owns about 37% of the outstanding common shares of Vitas.
The merger is expected to close before March 15, 2004; however, it is contingent upon receiving regulatory approvals and obtaining financing.
Roto-Rooter is a Cincinnati-based company that operates in the residential and commercial repair-and-maintenance service industry.
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