Pacer Health Corporation Successfully Completes $5.5 Million MIAMI--(BUSINESS WIRE)—July 16, 2007--Pacer Health Corporation (OTCBB:PHLH - News), a Miami-based owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities, announced that it has closed on a new $5.5 million five-year secured credit facility with Cornell Capital Partners, LP. The new facility replaces a $1 million, three-year credit facility that was set to expire on April 1, 2009 and a $1 million, three-year credit facility that was set to expire on May 5, 2009, which were both issued by Cornell Capital. The new credit facility will be used for general corporate purposes and future acquisitions.
The debentures, which are convertible at $0.02 prior to maturity and at the lower of $0.02 or 80% of the lowest volume weighted average price of the common stock for the 15 trading days immediately preceding the maturity date, require Pacer to register certain shares of common stock for resale by selling security holders of its common stock, including shares issued to Cornell Capital.
Commenting on the new credit facility, Rainier Gonzalez, chief executive officer, said, "The terms of the new facility demonstrate the significant progress Pacer has made over the past four years. We view this new credit facility as further validation of our business model and financial discipline." Mr. Gonzalez also said, "The new credit facility provides us with additional capital to help fuel our growth. We expect to take advantage of additional opportunities to improve our overall operations and optimize our capital structure as we move forward."
About Pacer Health Corporation
Pacer Health Corporation is an owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities serving non-urban areas throughout the Southeast. Please visit http://www.pacerhealth.com for more information.
Forward-Looking Statements
Certain statements and information included in this release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause actual results to differ materially from management's projections, estimates and expectations is contained in the Company's SEC filings. The Company undertakes no duty to update its forward- looking statements, including its long-term growth targets. Contact: Tina Vidal
305-828-7660
tvidal@pacerhealth.com
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