VCA Inc. Announces New $1.68 Billion Senior Credit Facility
June 29 2016 - 1:27PM
Business Wire
VCA Inc. (NASDAQ: WOOF), a leading animal healthcare
company in the United States and Canada, today announced that it
has increased its credit facility by approximately $300 million by
entering into a new $1.68 billion senior credit facility comprised
of $880 million of senior term notes and an $800 million revolving
facility. A portion of the proceeds of the new credit facility will
be used to retire the outstanding term notes and revolving facility
under the Company’s existing credit facility. The new senior term
loan and revolving facility are priced initially at LIBOR plus 175
basis points but will change depending on the Company’s ratio of
debt to EBITDA.
Bob Antin, Chairman and CEO, stated, “I am pleased that, as a
result of our consistently increasing operating results and cash
flow and the outstanding efforts of Bank of America Merrill Lynch,
J.P. Morgan Securities LLC, Barclays, SunTrust Robinson Humphrey
and Wells Fargo, we were able to increase our credit facility by
$300 million. We now have $425 million available on our revolving
facility which, along with our strong free cash flow, gives us the
financial flexibility to continue to grow our business while
optimizing our capital structure.
“Following our recently completed acquisition of an 80% interest
in Companion Animal Practices, North America (CAPNA) for $344
million and the acquisition of an additional $108 million of
hospital revenue during the first two quarters of this year, the
additional capacity under our new revolving facility enables us to
continue to focus on executing our disciplined capital deployment
strategy moving forward.”
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are not historical facts and
are inherently uncertain and out of our control. Any or all of our
forward-looking statements in this press release may turn out to be
wrong. They can be affected by inaccurate assumptions we might make
or by known or unknown risks and uncertainties. Actual future
results may vary materially. Among other factors that could cause
our actual results to differ from this forward-looking information
are: the continued effects of the economic uncertainty prevailing
in regions in which we operate; our ability to execute on our
growth strategy and to manage acquired operations; changes in
demand for our products and services; fluctuations in our revenue
adversely affecting our gross profit, operating income and margins;
and the effects of the other factors discussed in our Annual Report
on Form 10-K, Reports on Form 10-Q and our other filings with the
SEC.
About VCA
VCA is a leading animal healthcare company with operations in
the United States and Canada. Through VCA Animal Hospitals, VCA
owns, operates and manages the largest network of free-standing
veterinary hospitals in the United States and Canada, while its
Antech Diagnostics division operates the preeminent network of
veterinary exclusive clinical laboratories in North America. VCA
also supplies diagnostic imaging equipment to the veterinary
industry through its Sound™ division, and through Camp Bow Wow
franchises a premier provider of pet services including dog day
care, overnight boarding, grooming, and other ancillary services at
specially designed pet care facilities. For further information on
VCA and its various businesses, visit its website at www.vca.com.
Source: VCA Inc.
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version on businesswire.com: http://www.businesswire.com/news/home/20160629006237/en/
VCA Inc.Tomas FullerChief Financial Officer(310) 571-6505
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