TORONTO, June 2, 2017 /CNW/ - Centric Health Corporation ("Centric Health" or the "Company") (TSX:CHH), one of Canada's leading diversified healthcare services companies, announced today that, further to its news release of May 3, 2017, it closed the initial advance of its new credit facilities, being senior secured credit facilities of up to $100 million and $13.5 million of subordinated secured credit facilities.  The proceeds of the initial advance were applied to (i) payout Centric Health's existing senior secured revolving credit facility of up to $35 million, of which $26 million was drawn at closing, (ii) redemption of all of its 8.625% second lien senior secured notes due April 18, 2018 (the "Senior Notes") for the full redemption price of approximately $25.9 million, plus accrued and unpaid interest, and (ii) redemption of all of its 6.75% unsecured subordinated convertible notes due October 31, 2017 (the "Convertible Notes") for the full redemption price of approximately $27.5 million, plus accrued and unpaid interest.  The Senior Notes and the Convertible Notes were redeemed by the trustee for such notes on June 2, 2017.

The new credit facilities have a 5-year maturity.  Up to $2 million of the amount drawn on the subordinated credit facilities can be repaid without any premium or penalty on or before July 31, 2017 subject to certain conditions and the balance can be repaid without any premium or penalty 18 months after the date of the agreement subject to certain conditions.

Together with the Company's other debt reduction initiatives after taking into account the redemption of the Convertible Notes and Senior Notes, the Company's total annual finance charges have been reduced from $26.5 million in 2015 to an expected $4.5 million on a pro forma basis.

"This new credit facility, along with our debt reduction initiatives, are important milestones that reflect our success in streamlining the balance sheet and creating an improved platform for growth," said David Cutler, the President and Chief Executive Officer of the Company. "The significant debt reduction as well as the lower cost of debt enables management to fully focus on generating free cash flow by optimizing operations and investing in growing the business segments.  With two core divisions, both uniquely positioned to deliver innovative solutions within the Canadian Healthcare system, we have several opportunities to generate sustainable value for all stakeholders all with the unwavering commitment to the highest standards of quality care and outcomes."

About Centric Health

Centric Health's vision is to be Canada's most respected and recognized providers 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 a "Patient First" model composed of a growing national network of fulfilment centres that deliver high-volume solutions for the cost effective supply of chronic medication and other specialty clinical care services, serving more than 29,000 residents in over 425 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 five 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 goes through a major transformation 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, strategies, alternatives, objectives, information and statements about possible future events including closing of the new credit facilities and to pay down existing debt financing. 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 therefrom.

SOURCE Centric Health Corporation