April 5, 2001
AMERIPATH, INC. ANNOUNCES AMENDMENT TO CREDIT AGREEMENT
Riviera Beach, FL, April 5, 2001 - AmeriPath, Inc. (Nasdaq:PATH),
the largest physician and laboratory company focused
on providing anatomic pathology, cancer diagnostic, genomics,
and healthcare information services, today announced
that it has amended its credit facility with the syndicate
of banks led by Fleet National Bank.
The amendment was executed March 29, 2001, and provides
the Company with the ability to record charges, in excess
of those previously approved by the lenders, in connection
with the acquisition of Inform DX, without impacting
future covenant compliance. These additional charges
were disclosed in the Company's press release dated February
27, 2001. The Company expects the charges, totaling
approximately $7.2 million, to be recorded in the first
quarter of 2001. These charges resulted from the formalization
of the Inform DX integration plans and increased the
synergy estimates from $3.0 million to more than $5.0
million per year.
The amendment increased the Company's interest rate
by 37.5 basis points. Since the Company's interest rate
is tied to the prime rate or LIBOR, we believe that the
increase will be mitigated by the recent rate reductions
put in place by the Federal Reserve Board. As consideration
for the amendment, the Company will be required to pay
an amendment fee of up to 30 basis points to lenders
that consent to the amendment. This fee will be charged
to the merger costs in the first quarter of 2001. The
entire amendment will be filed on Form 8-K on April 6,
2001.
Chairman and Chief Executive Officer, James C. New,
stated, "We are pleased to announce the amendment to
our credit agreement.
Although the amendment came with some additional cost,
its execution clears the way for us to continue the integration
of Inform DX's operations with AmeriPath. These charges
were essential to accomplishing the most effective integration
plan and, as a result, our annual synergy estimates have
increased from our original estimate of $3.0 million
to $5.0 million. Once again, our syndicate of banks,
led by Fleet and Bank of America, has provided us with
the flexibility necessary to exceed our original goals."
AmeriPath, Inc. is the nation's largest company focused
on providing anatomic pathology, cancer diagnostics,
genomics, and physician and laboratory healthcare information
services to physicians, hospitals, national clinical
laboratories and managed care organizations. The Company's
425 physicians provide medical services through 42 outpatient
pathology laboratories, 224 hospital inpatient laboratories,
and 64 outpatient surgery centers in 21 states.
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The statements contained in this
press release may include "forward-looking
statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, and are based on management's
current beliefs and expectations. Past performance is
not necessarily indicative of future results. In addition,
forward-looking statements - which are identified by
words such as "may", "should", "believe", "expect", "anticipate", "estimate" and
similar expressions - as well as any financial and operating
estimates, forecasts and/or projections, are subject
to a number of risks and uncertainties, many of which
involve factors or circumstances which are beyond the
Company's ability to control. These factors, risks and
uncertainties could cause actual results to differ materially
from historical results or those expected, estimated
or anticipated. These include factors, risks and uncertainties
relating to general economic conditions; competition
and changes in competitive factors; the extent of success
of the Company's operating initiatives and growth strategies,
federal and state healthcare regulation (and compliance);
reimbursement rates under government-sponsored and third
party healthcare programs and the payments received under
such programs; changes in coding; changes in technology;
dependence upon pathologists and contracts; the ability
to attract, motivate, and retain pathologists; labor
and technology costs; marketing and promotional efforts;
the availability of pathology practices in appropriate
locations that the Company is able to acquire on suitable
terms or develop; the successful completion and integration
of acquisitions (and achievement of planned or expected
synergies); access to sufficient amounts of capital on
satisfactory terms; and tax laws. The forward looking
statements included in this press release are made as
of the date hereof, and the Company undertakes no obligation
to update or revise any such statements, whether as result
of new developments, new information or otherwise. Further
information regarding risks, uncertainties and other
factors that could affect the Company's financial or
operating results, or which could cause actual results
to differ materially from those expected, estimated or
anticipated, are included in the Company's annual report
on Form 10-K for the year ended December 31, 2000 and
subsequent filings with the SEC.
