Wednesday, February 1, 2023
OANDP-L
  • Login
No Result
View All Result
The O&P EDGE
  • PECOS
  • Magazine
    • Subscription
    • Current Issue
    • Issue Archive
    • News Archive
    • Product & Service Directory
    • Advertising Information
  • O&P Jobs
    • Find a Job
    • Post a Job
  • EDGE Advantage
  • O&P Facilities
  • Resources
    • Product & Service Directory
    • Calendar
    • Contact
    • About Us
    • O&P Library
    • The Guide
    • Custom Publications
    • Advertising Information
    • EDGE Direct
    • Amplitude Media Group
  • PECOS
  • Magazine
    • Subscription
    • Current Issue
    • Issue Archive
    • News Archive
    • Product & Service Directory
    • Advertising Information
  • O&P Jobs
    • Find a Job
    • Post a Job
  • EDGE Advantage
  • O&P Facilities
  • Resources
    • Product & Service Directory
    • Calendar
    • Contact
    • About Us
    • O&P Library
    • The Guide
    • Custom Publications
    • Advertising Information
    • EDGE Direct
    • Amplitude Media Group
No Result
View All Result
The O&P EDGE Magazine
No Result
View All Result
Home News

Hanger Working to Refinance Debt Structure

by The O&P EDGE
August 3, 2016
in News
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter


Hanger, Austin, Texas, announced that on August 1 it took several actions to refinance its debt structure, including entering into a new Term B credit agreement for a $280 million senior unsecured term loan, issuing a redemption notification to the holders of its outstanding 10.625 percent senior notes due 2018, and entering into a fifth amendment and waiver to further modify and extend waivers under its credit agreement. The details of these actions are outlined in a Current Report Form 8-K that Hanger filed with the U.S. Securities and Exchange Commission on August 2, and are summarized below.



Term B Credit Agreement



The credit agreement with Wilmington Trust, National Association, as administrative agent, provides for a $280 million senior unsecured loan at a fixed rate per annum of 11.5 percent payable quarterly in arrears, and contains customary events of default. All outstanding principal is due at maturity on August 1, 2019. The funds may be prepaid in whole or in part at any time, subject to fees as stipulated in the agreement. These funds must be used to redeem all of the outstanding notes, to repay a portion of the revolving borrowings under the company’s existing credit agreement, to pay fees and expenses in connection with the foregoing actions, and for working capital and general corporate purposes.


Notice of Redemption for 10.625 Percent Senior Notes due 2018


The Term B credit agreement requires Hanger to use the loan proceeds to redeem all of its outstanding notes. The aggregate redemption price for the notes will be about $203.6 million, plus accrued and unpaid interest through the redemption date, and is expected to occur on August 31.


Credit Agreement Amendment and Waiver



On July 15, Hanger entered into a fifth amendment and waiver agreement, effective August 1, that modified its original credit agreement dated June 17, 2013, with Bank of America, as agent. This agreement waives defaults and events of default under the credit agreement and also modifies certain terms and covenants, including increasing the interest rates.



The fifth amendment and waiver was negotiated in connection with, among other things, the company’s failure to deliver to the lenders certain financial information and other materials for the periods ended September 30, 2014, through March 31, and for its failure to comply with the leverage ratio for the quarter ended March 31. Hanger’s failure to deliver the required financial information to the agent on or before August 15, 2017, shall be an additional event of default.



In addition, the fifth amendment and waiver permanently reduces the aggregate revolving commitment under the credit agreement from $200 million to $135.3 million. Fifty percent of federal income tax refunds the company may receive for the tax year 2015 or earlier will be applied as a further permanent reduction of the aggregate revolving commitment, except that, in no event shall the commitment be reduced to less than $108 million. Further, the company must maintain minimum liquidity of $10 million.


“This new loan allows us to refinance our debt…and reducing borrowings under our revolving bank loan. It also provides working capital and gives us more flexibility as we work to complete our financial statements and file our annual reports,” said Hanger President and CEO Vinit Asar. “While we continue to assess the time needed to prepare and file our financial statements in light of the extensive review we have undertaken, we remain focused and committed to working as quickly as possible. Currently, we do not expect to commence filing before December of 2016.”

Related posts:

  1. Hanger Enters Into Sixth Amendment to Credit Agreement
  2. Hanger Requests Fourth Modification of Credit Agreement
  3. Hanger Enters Into Second Amendment of its Credit Agreement
  4. Hanger to Delay Filing Year-End Report
Previous Post

P&O Care Issues Notification of Data Breach

Next Post

P&O Care Issues Notification of Data Breach

Next Post

P&O Care Issues Notification of Data Breach

  • VIEW CURRENT ISSUE
  • SUBSCRIBE FOR FREE

RECENT NEWS

News

Pedors Launches Directory of Allied Foot Healthcare Professionals

by The O&P EDGE
January 24, 2023

Pedors Shoes, Georgia, launched an online directory to help patients find a local healthcare professional that specializes in foot and...

Read more

CMS Adds to Orthosis Face-to-Face and Written Order Prior to Delivery List

Corrected Dates for PrimeFare Central

Kenney Orthopedics Joins Limb Loss & Preservation Registry

Get unlimited access!

Join EDGE ADVANTAGE and unlock The O&P EDGE's vast library of archived content.
SUBSCRIBE TODAY

O&P JOBS

Eastern

CPO/CO/BOCPO and Orthotic Fitter

Central

Certified Prosthetist/Orthotists

Central

Part-Time Prosthetic Practitioner in Oklahoma

 

© 2021 The O&P EDGE

  • About
  • Advertise
  • Contact
  • EDGE Advantage
  • OANDP-L
  • Subscribe

CONTACT US

866-613-0257

[email protected]

201 E. 4th St
Loveland, CO 80537

The most important industry news and events delivered directly to your inbox every week.

No Result
View All Result
  • PECOS
  • MAGAZINE
    • SUBSCRIBE
    • CURRENT ISSUE
    • ISSUE ARCHIVE
    • NEWS ARCHIVE
    • PRODUCTS & SERVICES DIRECTORY
    • ADVERTISING INFORMATION
  • O&P JOBS
    • FIND A JOB
    • POST A JOB
  • EDGE ADVANTAGE
  • FACILITES
  • RESOURCES
    • PRODUCTS & SERVICES DIRECTORY
    • CALENDAR
    • CONTACT
    • ABOUT US
    • O&P LIBRARY
    • THE GUIDE
    • CUSTOM PUBLICATIONS
    • ADVERTISING
    • EDGE DIRECT
    • AMPLITUDE
  • OANDP-L
  • LOGIN

© 2021The O&P EDGE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
The O&P EDGE Magazine
 
Required 'Candidate' login to applying this job. Click here to logout And try again
 

Login to your account

  • Forgot Password? | Sign Up

Reset Password

  • Already have an account? Login

Enter the username or e-mail you used in your profile. A password reset link will be sent to you by email.

Signup to your Account

  • By clicking checkbox, you agree to our Terms and Conditions and Privacy Policy

    Already have an account? Login

Close
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
 

Account Activation

Before you can login, you must activate your account with the code sent to your email address. If you did not receive this email, please check your junk/spam folder. Click here to resend the activation email. If you entered an incorrect email address, you will need to re-register with the correct email address.