ResCare successfully completed a $100 million revolver and $35 million term loan with Bank One leading the deal. It was a difficult decision for the company to chose a lead among Bank One, National City and US Bank, according to Bryan Shaul, ResCare's cfo. National City led ResCare's previous facility in which Bank One was a significant participant, and US Bank also participated in that facility, Shaul said. "They've been outstanding participants, choosing one was very difficult but we felt that Bank One had the largest syndication desk," Shaul added. "We've had an outstanding working relationship with these banks," Shaul noted. "They got the job done. We are very pleased."
The facility is part of a larger program to redeem ResCare's 6% convertible subordinated notes, which were due Dec. 1, 2004. "In order to accomplish [the redemption] we recognized that we needed to refinance our existing bank facility, which was due September 2004," Shaul said. "We were doing a little bit of advanced planning." Both the term loan and revolver have a four-year maturity. Along with the note redemption, ResCare does not have any significant maturities in its debt for the next four years, Shaul said.
Pricing on the facility was not disclosed. GE Capital and Merrill Lynch hold agent roles in the deal. Shaul said he is very positive about J.P. Morgan's acquisition of Bank One. "They put the deal together in part to get to the retail and middle markets," Shaul said. "This just expands the availability for us." ResCare offers residential, training and support services to people with physical and mental disabilities.