TORONTO, May 11, 2012 /CNW/ - Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH), Canada's leading diversified healthcare services company, today announced that the Senior Lending Syndicate comprised of major Canadian banks has approved amendments to the Credit Agreement ("the Credit Agreement") for the Company's Term Loan, Revolving and Supplemental Facilities (together, the "Senior Debt"), including obtaining required waivers and favourable revisions to certain financial performance covenants and terms.  The amendments, which became effective on May 10, 2012, do not affect the outstanding amount of borrowings under, or the original amortization schedule of, the Senior Debt.

"In May 2011, simultaneously with the acquisition of Lifemark Health by Centric Health, the Company concluded the Credit Agreement which included various assumptions and terms including capacity for future acquisitions and general corporate purposes. The successful acquisitive growth strategy and utilization of these facilities necessitated updating of the agreement to take the Company's current situation into consideration, as well as provide the Company with some additional flexibility and working capital for growth going forward," said Peter Walkey, Chief Financial Officer, Centric Health Corporation.

Under the Lending Agreement, Centric Health revised, inter alia, certain of the Company's future financial performance covenants, including the Senior Debt to EBITDA¹ ratio. The Company's medium-term objective is to maintain a Senior Debt to EBITDA ratio of between 2.75 and 3.25.

"We appreciate the support and confidence from our Senior Lending Syndicate in assisting us with our growth strategy," said Jack Shevel, Executive Chairman and Interim President and Chief Executive Officer, Centric Health Corporation.  "The realignment of the covenants with the business needs allows us to focus on top line growth, while introducing additional cost containment measures and synergies across our platform of national networks."

The Term Loan and Revolving Facility had an outstanding balance of $182.6 million as of December 31, 2011.  Notably, this balance does not include the cash consideration and working capital effects of the acquisition by Centric Health of Motion Specialties on February 13, 2012.  On May 7, 2012, the Company completed a private placement of $15.0 million of subordinated, unsecured Convertible Notes, the proceeds of which will be used to pay down the Company's Term Loan. The Company has entered into interest rate swaps on $100.0 million of debt and has a fixed interest rate of 5.1% for the term of the loan. Management has identified numerous working capital improvement initiatives that are being implemented in 2012 and are expected to improve the net cash flow after debt service costs.  The Company is pursuing initiatives to reduce its senior debt levels through improved cash flow and may undertake equity financings from time to time subject to favourable market conditions.

¹EBITDA as defined subject to adjustment in terms of Credit Agreement.  (The Company defines EBITDA as earnings before interest expense, income taxes, amortization and stock-based compensation expense.)

About Centric Health

Centric Health's vision is to be Canada's premier healthcare company, providing innovative solutions centered on patients and healthcare professionals. As a diversified healthcare company with investments in several niche service areas, Centric Health currently has operations in medical assessments, disability and rehabilitation management, physiotherapy and surgical centres, homecare, specialty pharmacy, wellness and prevention and home medical equipment. With knowledge and experience of healthcare delivery in international markets and extensive and trusted relationships with payers, physicians, and government agencies, Centric Health is pursuing expansion opportunities into other healthcare sectors to create value for all stakeholders through an unwavering commitment to the highest quality of care. Centric Health is listed on the TSX under the symbol CHH. For further information, please visit www.centrichealth.ca and www.lifemark.ca. Centric Health's strategic advisor is Global Healthcare Investments & Solutions ("GHIS") (www.ghis.us). GHIS and entities controlled by shareholders of GHIS are currently the largest shareholders of Centric Health.

This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation.  These forward-looking statements include, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Centric Health and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits Centric Health will derive there-from.