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Silver Point Finance, Rotech Healthcare Announce New Term Loan Facility

December 27, 2012, 07:17 AM

Rotech Healthcare, a provider of home medical equipment and related products and services, entered into a new term loan credit agreement with Silver Point Finance in an aggregate principal amount of $25 million.

Rotech borrowed $23.5 million under the new facility on December 21, 2012. The remaining $1.5 million portion of the new facility not yet borrowed may be borrowed on a delayed draw basis on or before January 1, 2014, so long as certain limited conditions as set forth in the credit agreement are satisfied. The facility replaces and repays the company's existing commitments and loans under our prior credit agreement and, assuming the company will borrow the $1.5 million portion of the facility not yet borrowed, increases our available liquidity by approximately $15 million.

The loans under the new facility will mature on April 30, 2015 and does not require any amortization payments in respect of the loans. All principal borrowings under the facility participate in a first priority security interest in substantially all of the company's and the subsidiary guarantors' assets with the company's $230 million in aggregate principal amount of 10.75% senior secured notes due October 15, 2015.

Rotech Healthcare Inc. is one of the largest providers of home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. Rotech provides equipment and services in 49 states through approximately 420 operating locations located primarily in non-urban markets.

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