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The Ensign Group Increases New Credit Facility To $450 Million

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The Ensign Group, Inc. (Nasdaq: ENSG) revealed that the company and its operating subsidiaries were able to boost their credit facilities by $200 million to an aggregate of $450 million. According to the company, the borrowings were supported by a lending consortium arranged by SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC.

The Ensign Group said the fresh facility matured on February 5, 2021 and included a $300 million revolving line of credit apart from a fresh $150 million term loan component. The company indicated that it would be deployed immediately to pay down earlier drawn amounts on its revolver. The company added that the credit facility included a $150 million expansion option, among other things.

The company's CFO, Suzanne Snapper, commented, "These new borrowings further strengthen our long-term capital structure and, together with our strong operating performance, provide excellent flexibility in an ever-changing healthcare environment. We appreciate the continued support of our banking partners and we look forward to working with them further as we continue our strategy of disciplined growth."

She also confirmed that apart from the refinancing of some of the existing borrowings, the proceeds of the credit facility would be used to fund acquisitions, renovate and upgrade current, as well as future facilities, meet working capital requirements and for other business purposes.

Shares of the company advanced 1.12 percent on Friday.

Posted-In: News Financing General

 

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