The net proceeds of the private placement of approximately $2,500,000 were used, together with the company’s operating funds, to make an $8,000,000 pre-payment on the company’s term loan. Concurrent with and conditioned upon the term loan pre-payment, the company’s lenders modified the company’s existing credit agreement to reduce the interest rate, revise certain financial and other covenants and extend the maturity date of the credit agreement until Jan.1, 2013.
Robert M. Thornton, Jr., SunLink’s CEO, said in a statement “This private placement and the corresponding adjustments to and extension of the maturity of our credit agreement brings us a step closer to being in a position to enter into the previously announced proposed non-cash merger with Foundation Healthcare Affiliates, LLC, New Age Fuel, Inc, and Foundation Investment Affiliates I, LLC, which would expand the company’s business to include interests in 14 ambulatory surgery centers and two acute-care hospitals in seven states.”
Read the release on SunLink Health Systems.
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