‘Refinance’ Is the Word at Rotech

ORLANDO, Fla. — “With the recent refinancing of the
company’s senior debt we now look to refinancing the company’s
senior subordinated debt as soon as possible, subject to favorable
company financial performance and market conditions,” Rotech
Healthcare President and CEO Philip Carter stated in a release last
week on results from Q3, ended Sept 30. The company announced in
July it had been awarded 17 contracts under Round 1 of competitive
bidding.

Here’s what the release said about the provider’s debt: “As of
Sept. 30, 2010, the company had $73.5 million in cash. As of Sept.
30, 2010, the company had approximately $513.4 million of long-term
debt outstanding consisting of $225.8 million payable under its
senior credit facility which matures in September 2011, and $287
million of senior subordinated notes which mature in April 2012. On
Oct. 6, 2010, we refinanced our senior credit facility with $230
million of 10.75 percent senior secured notes due 2015. These notes
will mature Oct. 15, 2015 subject to automatic shortening to Dec.
31, 2011 if the aggregate principal amount of our senior
subordinated notes has not been reduced to $10 million or less
prior to Nov. 30, 2011.”

For the quarter, the company said “revenue generating patients
in the core product lines of oxygen and CPAP” grew 8 percent
compared to the same quarter in 2009, and adjusted EBITDA was $28.2
million from $22.7 million. For the nine months, adjusted EBITDA
increased to $82.5 million from $66 million.