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.