Health Care Deal News: Spotlight on Behavioral Health- May 2012

ResCare, Inc. and its parent, Onex Rescare Holding Corporation, have secured a $375.0 million credit agreement with Bank of America and other lenders. The agreement includes a $175.0 million term loan and revolving credit totaling $200.0 million. ResCare is likely to use its expanded borrowing capacity for working capital and such other purposes as acquisitions, particularly in the home care and residential segments of its business. In 2011, the company spent just $23.0 million on acquisitions, and in the first quarter of 2012, it spent just $4.6 million for a residential facility. We see room for significant acquisition activity going forward.....Want to read more? Click here for a free trial to The Health Care M&A Information Source and download the current issue today