NationsHealth Announces $7.0 Million Term Loan Facility
April 12 2007 - 5:00PM
Business Wire
NationsHealth, Inc. (Nasdaq: NHRX; NHRXW; NHRXU) today announced it
has amended and restated its credit facility with CapitalSource to
make an additional $7.0 million available under a multi-draw term
loan. NationsHealth anticipates using the term loan primarily for
acquisitions of smaller regional providers of diabetic supplies
that are seeking to exit the business ahead of Medicare�s
competitive bidding program. The amended and restated agreement
maintains the existing $10.0 million revolving credit facility,
which currently has an outstanding balance of approximately $2.5
million. �Our recent financial performance has allowed us to seek
more traditional sources of financing and this term loan is an
important milestone in support of our future growth,� commented
Timothy Fairbanks, NationsHealth�s Chief Financial Officer. �One of
the key drivers of our 2007 growth will be acquisitions. We have
completed three transactions over the last two quarters, and the
term loan will enable us to accelerate our acquisition strategy.�
About NationsHealth, Inc. NationsHealth seeks to improve the
delivery of healthcare to Medicare and managed care beneficiaries
by providing medical products and insurance related services.
NationsHealth provides home delivery of diabetes supplies,
medications and other medical products to patients across the
nation. In addition to its medical products business, NationsHealth
also provides education, marketing, enrollment and patient service
to insurers offering Medicare Part D prescription drug plans and
other Medicare insurance coverage. NationsHealth has an agreement
with CIGNA to service its Medicare Part D prescription drug plans
nationally. For more information please visit
http://www.nationshealth.com. About CapitalSource CapitalSource is
a leading commercial lending, investment and asset management
business focused on the middle market. As of December 31, 2006,
CapitalSource managed a $17 billion portfolio, including $8.6
billion in its commercial lending and investment business, $5.8
billion in its residential mortgage investment business, and $2.4
billion managed on behalf of third parties. Headquartered in Chevy
Chase, Maryland, the company has approximately 550 employees in
offices across the United States and in Europe. For more
information, visit http://www.capitalsource.com. This press release
contains forward-looking statements about NationsHealth, none of
which should be construed in any manner as a guarantee that such
results will in fact occur. Forward-looking statements are
statements that are not historical facts, and in some cases may be
identified by the words �anticipate,� �project,� �expect,� �plan,�
�intend,� �may,� �should,� �will,� and similar words or phrases.
Such forward-looking statements are based upon the current beliefs
and expectations of NationsHealth�s management and are subject to
risks and uncertainties, which could cause actual results to differ
from the forward-looking statements. The following factors, among
others, could cause actual results to differ from those set forth
in the forward-looking statements: our ability to maintain our
existing customer base; our dependence on Medicare reimbursement;
our customers� desire to take advantage of our Part D and specialty
pharmacy services; uncertainty in our costs incurred in
administering the Part D program; changes in Medicare, Medicaid,
Tricare, Champus and any other state or national-based
reimbursement program, including competitive bidding for durable
medical equipment and supplies; changing interpretations of
generally accepted accounting principles; outcomes of government
reviews of NationsHealth�s business practices; inquiries and
investigations and related litigation; continued compliance with
government regulations; legislation or regulatory requirements or
changes adversely affecting the businesses in which NationsHealth
is engaged; fluctuations in customer demand; management of rapid
growth; our ability to compete effectively; timing and market
acceptance of new products sold by NationsHealth; our ability to
successfully implement future growth strategies, including making
acquisitions of providers of diabetic supplies and certain of their
operating assets; our ability to successfully migrate diabetes
customers to NationsHealth�s services; our ability to successfully
integrate acquisitions of assets and businesses; general economic
conditions; and geopolitical events, regulatory changes and other
risks and uncertainties described in NationsHealth�s Annual Report
on Form 10-K for the year ended December 31, 2006 and
NationsHealth�s other reports filed with the Securities and
Exchange Commission. The information set forth herein should be
read in light of such risks. NationsHealth cautions investors not
to place undue reliance on the forward-looking statements contained
herein. These statements speak only as of the date of this press
release and, except as required by applicable law, NationsHealth
assumes no obligation to update the information contained herein.
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