TORONTO, Dec. 15, 2016 /CNW/ - Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH), Canada's leading diversified healthcare services company, today announced that it continues to make meaningful positive progress with respect to the next definitive steps on its strategy to simplify its balance sheet and reduce its cost of finance through refinancing, redemption and/or extending debt maturities to longer term debt financing in the context of the Company's organic and acquisitive growth plan. The Company is reviewing a number of options relating to refinancing its debt with the objective of redeeming or purchasing all or a portion of each of its Convertible Notes and its Second Lien Senior Secured Notes in advance of their maturities, subject to the right of the holders of the Convertible Notes to convert their notes in accordance with the terms.

The key terms of the Company's existing debt facility and debt securities including the current intention by the Company in respect of same is set out in the following table.

In addition to expected growth in free cash flow generation in 2017 resulting from the Company's significantly lower interest expense, the aforementioned intentions will be supported by cash inflows of $8 million for contingent consideration and hold back from the sale of the Physiotherapy, Rehabilitation and Medical Assessments business last December and the remaining $7.3 million to come from existing contractual commitments that are payable in the first half of 2017.

David Cutler, President and Chief Executive Officer, Centric Health Corporation, commented, "We had expected to be in a position to communicate definitive next steps for our balance sheet strategy by the end of this year. However, our significantly strengthened financial position, operational momentum and growth prospects have resulted in a wide array of opportunities and scenarios, which we are continuing to fulsomely explore and carefully evaluate."

"We are confident in our ability to deliver strong growth in 2017, supported by the recent expansion of our Specialty Pharmacy network and new contract wins, including a recently awarded long-term arrangement with a multi-province long-term care and retirement homes operator, which will ramp up throughout 2017 and is expected to more than offset the loss of an existing customer contract that is set to expire at the end of 2016. We see further upside potential as we continue to pursue strategic accretive tuck-in acquisitions. Combined with a significantly reduced interest expense and ongoing cost management, we are well positioned to generate significantly improved cash flows.  We are very pleased with numerous options before us and look forward to reporting on our path forward in the New Year."

Since the beginning of 2016, Centric Health has reduced its outstanding debt by $219.4 million, significantly improving its leverage ratios, resulting in an expected interest expense saving of $19.6 million annually.

About Centric Health

Centric Health's vision is to be Canada's most respected provider and brand in the independent healthcare sectors in which it operates, world renowned for delivering the highest levels of quality care and outcomes, innovative solutions and value to patients, clients and stakeholders. To this end, Centric Health primarily focuses on two core healthcare businesses:

• The Specialty Pharmacy division is composed of a growing national network of fulfilment centres that offer high-volume solutions for the cost effective supply of chronic medication and other specialty clinical services, serving more than 27,500 residents in over 375 seniors communities (long term care facilities, retirement homes and assisted living facilities) nationally. The Specialty Pharmacy division also provides pharmaceutical dispensing services for employees insured by corporate health plans.
• The Surgical & Medical Centres division is Canada's largest independent surgical provider operating six facilities across four provinces. It serves a diversified customer base with private paid non-insured surgeries and diagnostics, government outsourcing of insured surgeries and diagnostics and other procedures funded by third-party payors (including Workers Compensation) and is the proud owner of Canada's first Centre of Excellence in Metabolic and Bariatric Surgery.

With national networks of facilities in each of its businesses, deep knowledge and experience of healthcare delivery and extensive, trusted relationships with payers, physicians, and government agencies, the Company is uniquely positioned to address current and future healthcare needs in growing markets as the Canadian healthcare industry continues to evolve over the medium to long term.

This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Centric Health and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits Centric Health will derive there-from.

SOURCE Centric Health Corporation