CINCINNATI--(BUSINESS WIRE)--May 2, 2007--Chemed Corporation
("Chemed") (NYSE:CHE) entered into a new Bank Credit Facility
Agreement (Facility Agreement). JPMorgan Chase Bank acted as the
administrative agent and arranger for this transaction. Citibank and
LaSalle were the syndication agents and National City Bank was the
Terms of the Facility consist of a $100 million five-year term
loan and a $175 million revolving credit agreement. The interest rate
on this Facility Agreement has a floating rate that is currently LIBOR
plus 87.5 basis points. The term loan requires 10% amortization per
year and allows for early termination without any prepayment penalty.
An accordion feature is included in this Facility Agreement that
provides Chemed the opportunity to expand its revolver and/or term
loan an aggregate of $100 million.
Proceeds from this Facility Agreement will be used to fund the
redemption of Chemed's $150 million of 8-3/4% Senior Notes due 2011
(Notes) on May 4, 2007. The redemption is being made pursuant to the
terms of the indenture dated February 24, 2004 at a redemption price
of 104.375% of the principal amount of the Notes together with accrued
but unpaid interest.
Listed on the New York Stock Exchange and headquartered in
Cincinnati, Ohio, Chemed Corporation (www.chemed.com) operates two
wholly owned subsidiaries: VITAS Healthcare and Roto-Rooter. VITAS is
the nation's largest provider of end-of-life hospice care and
Roto-Rooter is the nation's leading provider of plumbing and drain
Statements in this press release or in other Chemed communications
may relate to future events or Chemed's future performance. Such
statements are forward-looking statements and are based on present
information Chemed has related to its existing business circumstances.
Investors are cautioned that such forward-looking statements are
subject to inherent risk that actual results may differ materially
from such forward-looking statements. Further, investors are cautioned
that Chemed does not assume any obligation to update forward-looking
statements based on unanticipated events or changed expectations.
CONTACT: Chemed Corporation
David P. Williams, 513-762-6901
SOURCE: Chemed Corporation