IPC The Hospitalist Signs New Credit Agreement

IPC The Hospitalist Company Inc. has entered into a new credit agreement, which company officials expect will help drive future growth. The North Hollywood-based hospitalist physician group company signed a new $75 million, five-year secured revolving credit agreement with Wells Fargo Bank, National Association and Comerica Banks as lenders. Wells Fargo is the lead arranger and sole book runner, as well as the administrative agent for the lenders. The new agreement replaces IPC’s existing $30 million credit agreement that was scheduled to mature on Sept. 15. There were no borrowings under the existing credit agreement at the time of closing. Devra Shapiro, IPC’s chief financial officer, said the new agreement demonstrates the financial community’s confidence in the strength of the company’s financial performance and credit profile. “We believe that this facility, along with our cash position and positive cash flow from operations, provides us with sufficient capital to continue to fund our organic and acquisition growth strategy,” Shapiro said. The new credit agreement will mature on Aug. 4, 2016. It contains an “accordion” feature that allows and increase of $25 million to the facility with lender approval. Interest rate options for each borrowing include the London Interbank Offered Rate, or the LIBOR, plus a margin of either 0.75 percent or 1.25 percent based on a leverage ratio, or the lender’s prime rate. Jessica Vernabe