NovaMed Announces $80 Million Senior Secured Credit Facility

• Press Release
• Source: NovaMed, Inc.
• On 7:00 am EDT, Tuesday September 1, 2009

CHICAGO--(BUSINESS WIRE)--NovaMed, Inc. (Nasdaq: NOVA - News), a leading operator of ambulatory surgery centers in partnership with physicians, today announced that it has entered into an amendment to its credit agreement. The key terms of the amended credit agreement are as follows:

• $80 million senior secured credit facility consisting of a $50 million revolving credit facility and a $30 million term loan facility. NovaMed has an option to increase the size of the revolving credit facility to $95 million under certain conditions.
• The term of the credit facility has been extended to December 15, 2011. However, if NovaMed has repaid or refinanced its convertible senior subordinated notes prior to this date, the term will be extended to August 30, 2012.
• NovaMed will be subject to a maximum total leverage ratio of 5.0 times initially, which will decrease to 4.75 times for the fiscal quarter ending December 31, 2009, 4.25 times for the fiscal quarter ending December 31, 2010 and 4.0 times for the fiscal quarter ending December 31, 2011 and thereafter.
• NovaMed will be subject to a maximum senior leverage ratio of 2.5 times initially, which will decrease to 2.25 times for the fiscal quarter ending December 31, 2010 and thereafter.
• Interest on borrowings under the facility is payable at an annual rate equal to LIBOR plus a range from 2.75% to 5.00% or Prime plus a range from 0.75% to 3.00%, depending on NovaMed’s total leverage ratio. At the company’s current total leverage ratio of 4.3 times, NovaMed’s interest rate on borrowings will be LIBOR plus 4.5% or Prime plus 2.5%.

Related Quotes

Symbol	Price	Change
NOVA	4.09	-0.01

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National City Bank remains as agent, with Bank of America, TD Banknorth, Siemens Financial Services and First Merit Bank, as the other participating banks. NovaMed intends to continue to use its credit facility for acquisitions as well as general corporate purposes.

“In light of current credit market conditions, we are pleased with the terms of our amended credit facility,” commented Thomas S. Hall, Chairman, President and Chief Executive Officer of NovaMed.

NovaMed acquires, develops and operates ambulatory surgery centers (“ASCs”) in partnership with physicians and holds majority ownership interests in 37 surgery centers located in 19 states.

This press release contains forward-looking statements that relate to possible future events. These statements are based on management’s current expectations and are subject to risks and uncertainties, which could cause our actual results to differ materially from those expressed or implied in this press release. These risks and uncertainties include: the current economic recession and disruption in the financial markets; our current and future debt levels; our ability to access capital on a cost-effective basis to continue to successfully implement our growth strategy; reduced prices and reimbursement rates for surgical procedures; our ability to acquire, develop or manage a sufficient number of profitable surgical facilities; our ability to maintain successful relationships with the physicians who use our surgical facilities; our ability to grow and manage effectively our increasing number of surgical facilities; competition from other companies in the acquisition, development and operation of surgical facilities; and the application of existing or proposed government regulations, or the adoption of new laws and regulations, that could limit our business operations, require us to incur significant expenditures or limit our ability to relocate our facilities if necessary. Readers are encouraged to review a more complete discussion of the factors affecting NovaMed’s business and prospects in its filings with the Securities and Exchange Commission, including the company’s 2008 Form 10-K filed on March 16, 2009. Readers should not place undue reliance on any forward-looking statements. Except as required by the federal securities laws, NovaMed undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

NovaMed, Inc.
Scott T. Macomber
Executive Vice President and Chief Financial Officer
(312) 664-4100
smacomber@novamed.com
or
Investor Relations:
Susan A. Noonan
S. A. Noonan Communications
(212) 966-3650
susan@sanoonan.com