Extendicare Inc., a prominent provider of care and services for seniors in Canada, recently announced securing a new senior secured credit facility amounting to $275.0 million. This credit facility, arranged with a group of Canadian chartered banks, is set for a term of three years. It comprises a revolving credit facility of up to $145.0 million and a delayed draw term loan facility of up to $130.0 million. The Revolving Facility will be utilized for working capital, general corporate purposes, capital expenditures, and acquisitions, replacing the Company’s former demand credit facilities. The Delayed Draw Facility, available until April 30, 2025, aims to repay the outstanding $126.5 million of 5.00% convertible subordinated debentures due in April 2025.
David Bacon, Senior Vice President and Chief Financial Officer of Extendicare, expressed gratitude for the support of the new lending group and highlighted the enhanced flexibility in the company’s capital structure to bolster growth objectives in home health care, managed services businesses, and long-term care redevelopment program execution. Furthermore, the Senior Secured Credit Facility allows for consecutive one-year extensions of the initial term, potential increase of the Revolving Facility by up to $50.0 million, and is secured by a portfolio of LTC homes in Ontario.
The syndicate of lenders, including Canadian Imperial Bank of Commerce (CIBC), Bank of Montreal, Royal Bank of Canada, The Toronto-Dominion Bank, and National Bank of Canada, played vital roles in structuring the credit facility. Legal representation for Extendicare was provided by Torys LLP, while lenders were represented by McCarthy Tétrault LLP.
Extendicare, operating under various brands like ParaMed and Extendicare Assist, is dedicated to delivering quality care to meet the evolving needs of seniors in Canada. With a network of 123 long-term care homes, annual delivery of approximately 10.5 million hours of home health care services, and group purchasing services for about 140,900 beds, Extendicare remains committed to its mission of providing compassionate care wherever individuals call home. The company employs around 22,000 skilled and passionate team members focused on enhancing the quality of life for those they serve.
For more information about Extendicare and its services, interested individuals can reach out to David Bacon, Senior Vice President and Chief Financial Officer, via email at [email protected] or visit the company’s official website at www.extendicare.com.
