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Sun Trust, Wells Fargo Arrange $250MM Facility for The Ensign Group

February 08, 2016, 07:51 AM

The Ensign Group, Inc. announced that Ensign and its operating subsidiaries have increased its revolving credit facility by $100 million to an aggregate of $250 million, $105 million of which was drawn as of February 1, 2016.  The credit facility is supported by a lending consortium arranged by SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC.  The amendment also reduced the LIBOR-based interest rate by 50 basis points and extended the termination date for the revolving commitment to February 5, 2021, among other things.

"This credit facility further strengthens our long-term capital structure and, together with our strong operating performance, extends Ensign's ability to continue expanding our portfolio of healthcare operations," said Suzanne Snapper, Ensign's Chief Financial Officer. "The continued confidence shown by our banking partners is a testament to Ensign's solid operating history and our strong balance sheet, and we look forward to working with them further as we continue our strategy of disciplined growth," she added.

Snapper confirmed that the proceeds of the credit facility will be used to fund acquisitions, renovate and upgrade existing and future facilities, cover working capital needs and for other corporate purposes. She also confirmed that Ensign’s current rent-adjusted net-debt-to-EBITDAR ratio is 3.37x.

The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and assisted living services, physical, occupational and speech therapies, home health and hospice services, urgent care services and other rehabilitative and healthcare services at 187 facilities, fourteen hospice agencies, fifteen home health agencies, three home care businesses and seventeen urgent care clinics in California, Arizona, Texas, Washington, Utah, Idaho, Colorado, Nevada, Iowa, Nebraska, Oregon, Wisconsin, Kansas and South Carolina.

SunTrust Robinson Humphrey is the trade name for the corporate and investment banking services of SunTrust Banks, Inc. and its subsidiaries. Securities and strategic advisory services are provided by SunTrust Robinson Humphrey, Inc., member FINRA and SIPC.

Wells Fargo Securities delivers a comprehensive set of capital markets and advisory products and services, including debt and equity origination and distribution, investment research and economic insights, interest rate, commodity and equity risk management, structured lending facilities, securitization, prime brokerage, clearing and fund services.

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