BETHESDA, Md., Aug. 29 /PRNewswire-FirstCall/ -- Hanger Orthopedic Group, Inc. today announced the approval of an amendment to its revolving credit facility and term loan B.
As discussed on the second quarter 2005 earning conference call, Hanger Orthopedic Group, Inc. engaged GE Healthcare Financial Services, the administrative agent for our bank facility, to both amend the financial covenants and extend the maturity of the revolving credit facility. Hanger received approvals from the requisite lenders and the amendment was effective on Friday August 26, 2005.
The most significant changes to the existing agreement included extending the term of the revolving credit facility to match the maturity of the term B and reducing the face amount of the revolving credit facility from $100 to $75 million. The reduction in the revolving credit facility will save the Company fees and provide adequate borrowing capacity given the fact that only $13 million was outstanding at June 30, 2005. All the financial covenants of both facilities were amended to levels that are consistent with Hanger's current and anticipated financial performance and to provide satisfactory borrowing capacity. A complete copy of the amendment will be filed as an exhibit to Form 8-K and filed with the SEC.
Hanger Orthopedic Group, Inc., headquartered in Bethesda, Maryland, is the world's premier provider of orthotic and prosthetic patient-care services. Hanger is the market leader in the United States, owning and operating 618 patient-care centers in 45 states including the District of Columbia, with 3,405 employees including 1,017 practitioners. Hanger is organized into four units. The two key operating units are patient-care which consists of nationwide orthotic and prosthetic practice centers and distribution which consists of distribution centers managing the supply chain of orthotic and prosthetic componentry to Hanger and third party patient-care centers. The third is Linkia which is the first and only provider network management company for the orthotics and prosthetics industry. The fourth unit, Innovative Neurotronics, introduces emerging neuromuscular technologies developed through independent research in a collaborative effort with industry suppliers worldwide.
This document contains forward-looking statements relating to the Company's results of operations. The United States Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward- looking statements. Statements relating to future results of operations in this document reflect the current views of management. However, various risks, uncertainties and contingencies could cause actual results or performance to differ materially from those expressed in, or implied by, these statements, including the Company's ability to enter into and derive benefits from managed care contracts, the demand for the Company's orthotic and prosthetic services and products and the other factors identified in the Company's periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
Hanger Orthopedic Group, Inc.CONTACT: Ivan R. Sabel, George E. McHenry, or Jason P. Owen of HangerOrthopedic Group, Inc. +1-301-986-0701
Web site: http://www.hanger.com//
