A Medical Device Daily
Select Medical (Mechanicsburg, Pennsylvania) and its parent corporation, Select Medical Holdings, entered into an amendment to Select's senior secured credit facility, dated as of Feb. 24, 2005, with a group of holders of Tranche B term loans and JPMorgan Chase Bank, as administrative agent. The amendment extended the maturity of $384,533,175.92 million principal amount of Tranche B term loans from Feb. 24, 2012 to Aug. 22, 2014, and made related technical changes to the credit facility. Holders of Tranche B term loans that extended the maturity of their Tranche B term loans now hold Tranche B-1 term loans that mature on Aug. 22, 2014, and holders of Tranche B term loans that did not extend the maturity of their Tranche B term loans continue to hold Tranche B term loans that mature on Feb. 24, 2012. The applicable rate for the Tranche B-1 term loans under the credit facility has increased to 3.75% for Eurodollar loans and 2.75% for ABR loans. Under the terms of the amendment, if, prior to Aug. 5, 2011, the credit facility is amended to reduce the applicable rate for the Tranche B-1 term loans, then Select will be required to pay a fee in an amount equal to 1% of the outstanding Tranche B-1 term loans held by those holders of Tranche B-1 term loans that agree to amend the credit facility to reduce the applicable rate. In addition, if, prior to Aug. 5, 2011, Select makes any prepayment of Tranche B-1 term loans with proceeds of any term loan indebtedness, then Select will be required to pay a fee to holders of Tranche B-1 term loans in an amount equal to 1% of the outstanding Tranche B-1 term loans that are being prepaid.
Select operates specialty hospitals in the U.S. It operates 87 long-term acute care hospitals and five acute medical rehabilitation hospitals in 25 states. The company also operates outpatient rehabilitation clinics, with roughly 948 locations in 37 states and the District of Columbia. Select also provides medical rehabilitation services on a contract basis at nursing homes, hospitals, assisted living and senior care centers, schools and worksites.