Boston, MA 08/29/2014 (wallstreetpr) – VCA Inc (NASDAQ:WOOF) has announced a new revolving credit facility of $1.4 billion which will provide for $600 million of senior term notes. The new facility and senior term loan are priced at an LIBOR plus 175 basis points which can change as per the VCA’s ratio of debt to EBITDA.
VCA already has got an existing credit facility which has got around $534 million of outstanding term notes. With the new credit facility, VCA wants to retire the outstanding term notes. Also, it wants to retire another existing $800 million revolving facility.
Repurchase program
Apart from the new credit facility, VCA Inc (NASDAQ:WOOF) also announced about the authorization of its new share repurchase program of up to $400 million of its common shares. The repurchases will be done in the form of open market transactions, privately negotiated transactions, block trades and accelerated share repurchases. VCA will analyze the market conditions, and according will make the repurchases from time to time.
The timing and quantity of repurchase will vary as per the price, legal requirements, capital availability, economic and market conditions and other factors. The repurchase program is optional and not compulsory, and can be discontinued or suspended at any time without prior notice. VCA recently completed $125 million shares repurchase program that was authorized by the Board of Directors. VCA Inc (NASDAQ:WOOF) aims to balance the share repurchase program with the acquisition opportunities. The focus will remain on disciplined and balanced capital deployment so as to increase the market share in the pet care industry.
The management view
Bob Antin, Chairman and the CEO, said that the steady operating results, consistent cash flow and efforts of J.P. Morgan Securities LLC, SunTrust Robinson Humphrey and Bank of America Merrill Lynch helped VCA Inc (NASDAQ:WOOF) to get a credit facility at attractive terms. The borrowing costs are lowered, and VCA has got the financial flexibility to boost the growth in coming time.
