KINDRED HEALTHCARE, INC. (NYSE:KND) Files An 8-K Entry into a Material Definitive Agreement
Item1.01.
| Entry into a Material Definitive Agreement. |
On March14, 2017, Kindred Healthcare, Inc. (Kindred) entered into
a sixth amendment and restatement agreement (the Term Loan
Amendment Agreement) among Kindred, the other credit parties
party thereto, JPMorgan Chase Bank, N.A., as administrative agent
and collateral agent (the Term Loan Agent), and the lenders party
thereto. The Term Loan Amendment Agreement amends and restates
that certain Fifth Amended and Restated Term Loan Credit
Agreement dated as of June14, 2016, among Kindred, the Term Loan
Agent and the lenders party thereto (the Prior Term Loan
Facility).
The Term Loan Amendment Agreement amends and restates the Prior
Term Loan Facility to, among other things, (1)make adjustments to
certain covenants and definitions to better accommodate the
Companys previously announced plan to sell its skilled nursing
division, (2)provide the Company with increased leverage covenant
flexibility for an interim period, (3)increase the applicable
margin on the outstanding borrowings from 3.25% to 3.50% for
LIBOR rate borrowings and from 2.25% to 2.50% for base rate
borrowings, (4)require a maximum leverage ratio of no more than
5.00 to 1.00 for use of the $50million annual dividend basket,
and (5)provide for a prepayment premium of 1.00% in connection
with any repricing transaction within six months of the closing
date.
The descriptions of the Term Loan Amendment Agreement is
qualified by the full text of the Term Loan Amendment Agreement,
which is attached hereto as Exhibit10.1 and incorporated herein
by reference.
| Item9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits |
|
Exhibit |
Description |
|
| 10.1 |
Sixth Amendment and Restatement Agreement dated as of March14, 2017, by and among Kindred Healthcare, Inc., the other Credit Parties party thereto, the Consenting Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent. |
About KINDRED HEALTHCARE, INC. (NYSE:KND)
Kindred Healthcare, Inc. is a healthcare services company. The Company operates through four divisions, including the hospital division, the Kindred at Home division, the Kindred Rehabilitation Services division and the nursing center division. Its divisions represent over six segments, including hospitals, home health services, hospice services, Kindred Hospital Rehabilitation Services, RehabCare and nursing centers. The Company’s hospital division provides long-term acute care services through the operation of a national network of approximately 95 transitional care (TC) hospitals. Its Kindred at Home division provides home health, hospice, and community care services. Its Kindred Rehabilitation Services division operates inpatient rehabilitation hospitals (IRFs) and acute rehabilitation units (ARUs), and provides rehabilitation services. Its nursing center division provides care through the operation of a national network of approximately 90 nursing centers. KINDRED HEALTHCARE, INC. (NYSE:KND) Recent Trading Information
KINDRED HEALTHCARE, INC. (NYSE:KND) closed its last trading session down -0.30 at 8.10 with 899,155 shares trading hands.