A long-term care (LTC) company says it needs more financial flexibility to cope with Medicare reimbursement rate cuts that took effect Oct. 1.
Sun Healthcare Group Inc., Irvine, Calif. (Nasdaq:SUNH), says it will be trying to amend its senior secured credit facility.
If the company succeeds at reaching an agreement with the lenders that provided the facility, it would pay back principal more quickly and pay a higher rate of interest in exchange for more flexibility in connection with covenants, the company says.
Loan covenants might relate to matters such as a company’s profitability or revenue growth.