Prospect Medical Holdings, Inc. (AMEX: PZZ) ("Prospect"), which manages the medical care of HMO enrollees in Southern California, today announced that it has completed its previously announced acquisition of ProMed Health Care for cash consideration of $41.0 million and shares of Prospect common stock valued at approximately $7.0 million.
Bank of America provided $53.0 million of financing to Prospect for the acquisition, which was comprised of a $48.0 million term loan, with an initial interest rate of prime plus 0.75%, and a $5.0 million revolving credit facility, with an initial interest rate of prime plus 0.25%. The term loan was used to fund the cash portion of the ProMed acquisition and to repay the remaining approximately $7.5 million balance on Prospect's existing credit facility with GMAC Health Capital. As a result of the acquisition, Prospect is now the sixth-largest IPA in the state of California.
0 comments :
Post a Comment