Hanger, Inc. (HGR) announced that it has signed a new 5-year credit agreement that increases its senior secured facilities to an aggregate of up to $425 million from $400 million previously.
The company said the new credit agreement includes a $200 million revolving credit facility and a $225 million term loan facility. The previous credit agreement was comprised of a $100 million revolving credit facility and a $300 million term loan. Each new facility matures on June 17, 2018, and is subject to a leveraged-based pricing grid, with initial pricing of LIBOR plus 1.75%.
Hanger stated that previously its interest rate was LIBOR plus 3.25% on its revolver and LIBOR plus 3.00%, with a 1.00% LIBOR floor, on its term loan. The company expects that the refinancing will generate $7.0 to $7.5 million of annual pre-tax interest expense savings, and have an annualized accretive impact of $0.12 to $0.13 per diluted share.
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