Exhibit 99.1
PHC, INC. DECREASES COST OF CAPITAL AND EXPANDS CREDIT LINE
Strong Balance Sheet and Favorable Credit History
Enables PHC to Negotiate Lower Interest Rate
FOR IMMEDIATE RELEASE
Company Contact: Investor Relations Contact:
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PHC, Inc. Hayden Communications, Inc.
Bruce A. Shear Brett Maas or Peter Seltzberg
(978) 536-2777 (646) 415-8972
Peabody, Mass., June 18, 2007 -- PHC, Inc., d.b.a. Pioneer Behavioral Health
(AMEX: PHC), a leading provider of inpatient and outpatient behavioral health
services, today announced that it has successfully renegotiated and extended its
relationship with CapitalSource, resulting in an expanded bank line which will
now total $6.5 million at a lower interest rate consistent with conventional
bank borrowing compared to its prior arrangement. The new $6.5 million loan
consists of a $3.5 million revolving line of credit and a $3 million term loan,
to be drawn as needed, and will have a maturity date of October 2011.
Bruce A. Shear, President and Chief Executive Officer of Pioneer Behavioral
Health, commented, "Our consistent financial performance, stronger balance
sheet, and positive outlook enabled us to reduce our interest expense and expand
our credit line, which will help us to accelerate our growth. We are pleased to
continue our relationship with CapitalSource, and gratified that they have shown
this level of confidence in PHC and its business plan."
Keith Reuben, Co-President of CapitalSource's healthcare and specialty finance
business added, "We are delighted to expand our long-term relationship with
Pioneer. We have been doing business with this management team for many years,
and we are pleased to support their continued growth as we continue to expand
our loan portfolio."
About CapitalSource
CapitalSource is a leading commercial lending, investment and asset management
business focused on the middle market. As of March 31, 2007, CapitalSource
managed an $18.3 billion portfolio, including $9.5 billion in its commercial
lending and investing business, $5.6 billion in its residential mortgage
investment business, and $3.0 billion managed on behalf of third parties.
Headquartered in Chevy Chase, Maryland, the company has approximately 540
employees in offices across the United States and in Europe. For more
information, visit http://www.CapitalSource.com.
About Pioneer Behavioral Health
Pioneer Behavioral Health operates companies that provide inpatient and
outpatient behavioral health care services, clinical research and Internet and
telephonic-based referral services. The companies contract with national
insurance companies, government payors, and major transportation and gaming
companies, among others, to provide such services. For more information, please
visit www.phc-inc.com or www.haydenir.com.
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Statement under the Private Securities Litigation Reform Act of 1995:
Statement under the Private Securities Litigation Reform Act of 1995: This press
release may include "forward-looking statements" that are subject to risks and
uncertainties. Forward-looking statements include information about possible or
assumed future results of the operations or the performance of the company and
its future plans and objectives. Various future events or factors may cause the
actual results to vary materially from those expressed in any forward-looking
statements made in this press release. For a discussion of these factors and
risks, see the company's annual report on Form 10-K for the most recently ended
fiscal year.
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