TORONTO, Nov. 11, 2013 /CNW/ - Further to the refinancing referred to in its third quarter 2013 results news release of November 5, 2013, Centric Health Corporation ("Centric Health" or the "Corporation") (TSX:CHH) today announced the conversion price and warrant exercise price associated with the refinancing of $5 million of outstanding convertible debt issued to Jamon Investments LLC ("Jamon") due November 9, 2013 (the "2010 Convertible Debt"). Jamon is an associated entity of Dr. Jack Shevel, the Corporation's executive chairman. The independent members of Centric Health's Board of Directors approved the refinancing on November 5, 2013.
The salient terms of the refinancing include:
- New Issuance of Convertible Debt in full satisfaction of the principal amount owing pursuant to the 2010 Convertible Debt:
- $5 million;
- Interest Rate: 6% payable quarterly;
- Maturity Date: April 30, 2018;
- Option to convert the loan into Centric Health common shares at $0.46 per share;
- Issue of 1 million Centric Health warrants, exercisable at $0.46 per share expiring on April 30, 2018.
All 1 million warrants issued in connection with the 2010 Convertible Debt have expired.
"The favorable terms of this refinancing, as well as 20 percent premium to the latest closing share price for conversion of the loan and exercise of warrants, represent a vote of confidence and commitment by a major shareholder," said Daniel Gagnon, Chief Financial Officer, Centric Health Corporation. "The refinancing represents another step forward in management's efforts to improve the balance sheet by focusing on cost-effective financing measures that generate additional free cash flow and provide additional financial flexibility as we continue to focus on execution of our growth strategy."
Conditional regulatory approval has been received for the issuance of the convertible debt and warrants.
About Centric Health
Centric Health is Canada's leading diversified healthcare company and dedicated to building on the strengths of Canada's healthcare system through innovative solutions. Through a series of strategic acquisitions, the Company has amassed a national platform for delivery of a broad range of services through more than 3,600 staff and consultants at almost 1,000 locations and has preferred provider contracts with over 50 corporations, government agencies and employers, and over 600 contracts with Long Term Care and Retirement Homes. This platform provides compelling growth prospects through synergies, rationalization and cross-pollination opportunities to create meaningful value for all stakeholders. Above all, Centric Health has an unwavering commitment to employ the highest service and ethical standards and deliver a superior quality of care with the best possible clinical outcomes. For more information, visit www.centrichealth.ca.
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
For further information:
Chief Financial Officer
416-815-0700 ext. 257