USA:Linen management solution provider Angelica to raise credit facility

Linen management solutions provider Angelica Corporation announced it has amended its existing credit facility creating additional borrowing capacity for the Company.

Under the terms of the amended agreement, the credit facility becomes secured and the debt to EBITDA ratio covenant is increased to 4.0, from the current 2.75 limit. The total facility remains unchanged at $150 million, but the revolving line of credit has been increased to $150 million from $100 million and the current $50 million term loan has been repaid using this increased line of credit.

Additionally, the Company may request an increase in the amount of the revolver up to $25 million without amending the facility, subject to bank approval under the accordion feature of the agreement. The maturity of the line of credit has been extended to July 2010. LaSalle Bank N.A. remains the lead bank of the bank group consisting of Union Planters, National City Bank, Wells Fargo Bank N.A. and UMB Bank N.A.

Steve O''Hara, CEO of Angelica, said, "After reviewing various financing alternatives, this amended facility proposed by LaSalle Bank, the lead bank in their group, was the most competitive in the marketplace. This loan amendment allows us increased flexibility and borrowing capacity to continue executing their healthcare linen management growth strategy. They are pleased and grateful that their bankers continue to show confidence in this strategy."

Missouri based Angelica Corporation traded on the New York Stock Exchange under the symbol AGL, is a leading provider of textile rental and linen management services to the US healthcare market. Through a West Coast acquistion made in 1968, Angelica became a supplier of textile rental services to the health care industry.

In the 1970s, major laundry acquisitions were made in the Northeast and, again, on the West Coast. A large number of Florida facilities was added in 1990. With other acquisitions and strong internal growth, Angelica now has 26 plants across the country and has achieved and maintained a leading share of this market.