American Renal Associates announced amended credit agreement

American Renal Associates Holdings announced that its indirect wholly owned subsidiary, American Renal Holdings, has entered into an amendment to the credit agreement, dated June 22, 2017, with the holders of a majority of ARH’s $100M senior secured revolving credit facility and $440M senior secured term B loan facility waiving, among other things, certain defaults or potential defaults under the credit agreement. In connection with the Amendment, ARH paid a 100-basis point fee to the lenders consenting to the Amendment and agreed to increase the interest rate on borrowings under the credit agreement. The amendment waives any defaults or potential default under the credit agreement arising from ARH’s prior delivery of certain inaccurate financial statements. Under terms of the Amendment, any such defaults or potential defaults are waived until the earlier of September 9, 2019 or such date as ARH has provided the lenders with the amended financial statements and the delayed financial statements. “If it is determined on or after that date that ARH failed to satisfy the maximum consolidated net leverage ratio when required on or after the last day of the fiscal quarter covered by any of the delayed financial statements described in the preceding paragraph, an event of default will be deemed to have occurred. In addition, ARH will be required to pay any interest or fees that are ultimately determined to have been payable but for the application of a lower applicable rate,” American Renal Associates announced. The company intends to file the amended financial statements with the SEC “as soon as practicable.”

https://thefly.com/landingPageNews.php?id=2898613