December 17, 1999
AMERIPATH ANNOUNCES INCREASED CREDIT FACILITY
Riviera Beach, FL, December 17, 1999 - AmeriPath, Inc.
(Nasdaq: PATH), a physician group practice and laboratory
management company focused on anatomic pathology services,
announced that it has amended its credit facility to
provide for up to $300 million and to extend the term
to five years. Under the amended facility, the Company
has committed funding of $230 million from a syndicate
of financial institutions led by BankBoston, N.A. (Administrative
Agent) and Bank of America, N.A. (Syndication Agent)
with Bank One, N.A., and First Union National Bank, as
Co-Agents. The facility was arranged by FleetBoston
Robertson Stephens, Inc. This facility provides the
Company with increased availability of funding to further
its presence, visibility, and growth within the pathology
marketplace.
James New, AmeriPath's Chairman and Chief Executive
Officer, stated that "We sincerely appreciate the continued
support of the banking community, particularly those
banks that have been with us since the early days, and
we also welcome the new banks to the syndicate of 11
financial institutions." New further commented that "Our
ability to increase our credit facility in today's tight
credit market clearly confirms the Company's sound business
fundamentals and recognition of its accomplishments." He
added, "The bankers looked beyond the current market
conditions for healthcare credits and made their commitments
based on the Company's operating performance."
Kevin Cronin, Group Executive of BankBoston stated, "We
believe in the management of the Company and their ability
to execute their plans. With the support of the other
financial institutions in the facility, we look forward
to continuing to be the Company's strategic banking partner."
The Company will use the funds available under the amended
facility to refinance its existing indebtedness and provide
working capital for the growth and development of the
business. This funding, coupled with the Company's annualized
cash flows from operations of $35 million, will support
the Company's ability to continue acquiring pathology
groups in targeted markets, developing of its Center
for Advanced Diagnostics, and to establish other de novo
laboratories in major markets, such as the Ackerman Institute
of Dermatopathology in New York.
AmeriPath, Inc. is the nation's leading physician group
practice and laboratory management company focused on
providing anatomic pathology services to physicians,
hospitals, national clinical laboratories, and managed
care organizations. The Company presently operates in
13 states and employs 301 pathologists who provide medical
services through outpatient pathology laboratories, hospital
inpatient laboratories, and outpatient surgery centers.
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This
release contains certain forward-looking statements
regarding AmeriPath, including its operations
and prospects. Past
performance is not necessarily indicative of future results. In
addition, AmeriPath's actual results could differ materially
from the results anticipated in these forward-looking
statements as a result of uncertainties, including risks
relating to demand, pricing, government regulation, payments
and reimbursement, changes in reimbursement coding guidelines,
dependence upon contracts and pathologists, acquisitions
and affiliations, growth and integration of acquired
practices, the market for pathology services, competition,
and other factors identified and discussed in AmeriPath's
filings with the Securities and Exchange Commission (including
its Form 10-K Annual Report).
