Oklahoma City based ambulatory surgery centers operator Foundation HealthCare is eyeing acquisitions, and it just took out a $20 million line of credit to make that happen.
According to the company, Bank SNB and Texas Capital Bank will give Foundation a $10 million acquisition line of credit and an additional $10 million on an incremental basis.
"The acquisition line of credit enables Foundation to act quickly in the acquisition of majority interests in surgical hospitals in selected target markets," CEO Stanton Nelson said in a statement.
The company recently used proceeds from the sale of its minority interest in a Sherman, Texas hospital to pay down its debt with SNB and Texas Capital by $7 million and expects to pay down another $3 million by the end of the year.
Under terms of the deal, the total amount of the loans may not exceed three times its most current operating earnings before interest, income taxes, depreciation and amortizations.
Foundation runs three surgical hospitals and 10 outpatient surgical centers.