ATLANTA - Grancare Inc. said it has accepted a commitment for a minimum $150 million revolving credit facility from First Union Bank of North Carolina.
The credit facility is to close within four weeks.
The new facility with the lead bank of First Union Corp. will almost double the size of the company's current $80 million facility, and it will also reduce Grancare's borrowing costs while providing greater financing flexibility.
Future borrowings under the agreement will be used to refinance amounts outstanding under the current line, finance acquisitions, and fund working capital.
Grancare is a leading provider of long-term health care and rehabilitation services through its base of 9,500 beds dedicated to skilled nursing and subacute care. It also has a growing network of hospital management services.
The company also provides institutional pharmacy services to patients in about 90,000 long-term-care beds.