PetDRx tweaks loan

By Geert De Lombaerde Posted on March 31, 2009 at 10:01 pm

The struggling veterinary hospital operator (Ticker: VETS) has renegotiated its loan with Huntington Capital, which is based in San Diego.

The First Amendment waives the Company’s default of the prior covenants as of December 31, 2008, as well as through March 31, 2009. In addition, all future financial covenant requirements have been removed through the term of the loan.

Under the terms of the First Amendment, the Company is required to accelerate and make a $0.3 million principal payment on April 1, 2009 and then pay the remaining $1.1 million of principal over eighteen ratable monthly payments commencing on July 1, 2009 and ending on December 1, 2010. There was no change to the interest rate of the note. Additionally, upon execution of the First Amendment, the Company was required to pay a $100,000 restructuring fee and will be required to pay an additional restructuring fee of $150,000 on December 1, 2010.

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Tags: debt covenants, hospital management, Huntington Capital LP, Pet DRx Corp., specialty hospitals, specialty lending