Exhibit 99.1
PAINCARE HOLDINGS REACHES FINAL AGREEMENT REGARDING THE TERMS OF A $25 MILLION SENIOR SECURED CREDIT FACILITY
ORLANDO, FL – (PR NEWSWIRE) – May 10, 2005 –PainCare Holdings, Inc. (AMEX:PRZ), a leader in the delivery of orthopedic rehabilitation, minimally-invasive spine surgery and pain management solutions, today announced that it has reached a final agreement regarding the terms of a $25 million, senior secured credit facility from an investment fund managed by HBK Investments L.P., a Dallas-based alternative investment firm.
The credit facility, which carries a term of 48 months and an interest rate equal to LIBOR + 7.25%, will be used primarily to fund the Company’s growth-through-acquisition strategy and to retire a portion of the Company’s existing debt. PainCare expects to immediately draw just over $13.6 million and will have the option to make additional draws of up to just under $11.4 million. No warrants or other equity securities were issued to any party in connection with this transaction.
Randy Lubinsky, CEO of PainCare Holdings, stated, “We are very pleased to complete this financing transaction with HBK. This capital, combined with PainCare’s strong financial position, will provide us with the necessary financial strength to aggressively execute our growth strategies well into the foreseeable future.”
First Albany Capital acted as placement agent for PainCare in connection with the credit facility.
About PainCare Holdings, Inc.
Founded in Orlando, Florida in 2000, PainCare is rapidly emerging as one of North America's leading providers of cost-effective, high-tech pain relief. The Company has established and is aggressively expanding a highly specialized, professional health services organization that is comprised of many internationally renowned neuro- and orthopedic surgeons, physiatrists and pain management specialists. Specifically, PainCare's cadre of medical professionals offer pain sufferers a wide range of modalities including interventional pain management, minimally invasive spine surgery and orthopedic rehabilitation.
Through acquired or managed practices, and in partnership with independent physician practices, group practices and medical institutions throughout the country, PainCare also offers numerous ancillary services includingMedX-Direct, a proprietary, on-site, turnkey orthopedic rehabilitation program;EDX-Direct, a comprehensive electro-diagnostic medicine program; diagnostic imaging services;Intra Articular Joint Program, a proprietary, non-operative treatment protocol for addressing knee pain and stiffness caused by osteoarthritis; and medical real estate services. In addition, the Company owns and operates three ambulatory surgery centers located in the southeast region of the United States.
For more information on PainCare Holdings, please visit http://www.paincareholdings.com.
This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. These forward-looking statements, which may include statements regarding our future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses, future operating margins and other future or expected performance, are subject to the following risks: the acquisition of businesses or the launch of new lines of business, which could increase operating expenses and dilute operating margins ;the inability to attract new patients by our owned practices, the managed practices and the limited management practices ;increased competition, which could lead to negative pressure on our pricing and the need for increased marketing; the inability to maintain, establish or renew relationships with physician practices, whether due to competition or other factors; the inability to comply with regulatory requirements governing our owned practices the managed practices and the limited management practices; that projected operating efficiencies will not be achieved due to implementation difficulties or contractual spending commitments that cannot be reduced; and to the general risks associated with our businesses.
In addition to the risks and uncertainties discussed above you can find additional information concerning risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements in the reports that we have filed with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent our judgment as of the date of this release and you should not unduly rely on such statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in the filing may not occur, and actual results could differ materially from tho se anticipated or implied in the forward-looking statements.
FOR MORE INFORMATION, PLEASE CONTACT:
Media Relations
Mike Krutzler, Higher Advertising, Inc.
at 407.447.1340 or via email at Mike@highadvertising.com
Investor Relations
Stephanie Noiseux, Elite Financial Communications Group, LLC
at 407.585.1080 or via email at prz@efcg.net
