LOUISVILLE, Ky., Dec. 16, 2010 (GLOBE NEWSWIRE) -- ResCare, Inc. (Nasdaq:RSCR) announced today that it had entered into an agreement to sell $200 million principal amount of 10.75% Senior Notes due 2019 (the "Notes") through a private placement, subject to market and other customary conditions.
The Company intends to use the net proceeds from the proposed placement to repurchase and retire the $150 million aggregate outstanding principal amount of its 7.75% Senior Notes Due 2013 (the "Existing Notes"), to fund the second-step share exchange transaction through which an affiliate of Onex Partners III LP will complete the previously announced acquisition of all of the publicly held shares of ResCare, and for general corporate purposes.
The Notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and will be offered only to qualified institutional buyers under Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act.
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
About ResCare
ResCare, founded in 1974, offers services to some 60,000 people in 41 states, Washington, DC, Puerto Rico and certain international locations. ResCare is a human services company that provides residential, therapeutic, job training and educational supports to people with developmental or other disabilities, to elderly people who need in-home care, to youths with special needs and to adults who are experiencing barriers to employment. The Company is based in Louisville, Kentucky.
The Company from time to time makes forward-looking statements in its public disclosures, including statements relating to revenues that might be expected from new or acquired programs and facilities, other statements regarding development and acquisition activities, statements regarding reimbursement under federal and state programs and statements regarding various trends favoring downsizing, deinstitutionalization and privatization of government programs. These statements include, but are not limited to, statements relating to the offering of the Notes and the anticipated use of proceeds therefrom. In the Company's filings under the federal securities laws, including its annual, periodic and current reports, the Company identifies important factors that could cause the Company's results to differ materially from those contained in such forward-looking statements. Please refer to those disclosures.
This press release is not a proxy statement or a solicitation of proxies from the holders of ResCare's securities, or an offer to purchase or a solicitation of an offer to sell securities, including the Existing Notes. Any solicitation of proxies will be made only pursuant to the definitive proxy statement mailed by ResCare to its shareholders who hold such securities as of the record date.
CONTACT: ResCare, Inc. David W. Miles, Chief Financial Officer 502-394-2137