EX-99.1 2 g07256exv99w1.htm EX-99.1 SECTION OF CONFIDENTIAL INFORMATION MEMORANDUM Ex-99.1
 

Exhibit 99.1
Pro Forma Capitalization
The following table reflects the pro forma capitalization of the Company after the acquisition of Horizon Health Corporation (“Horizon Health”), assuming the transaction closed on March 31, 2007:
($ in millions)
PRO FORMA CAPITALIZATION
                         
    March 31, 2007  
    PSI     Horizon     Pro Forma  
 
                        
Cash
   $ 15.7             $ 15.7  
 
                        
Revolver (1)
   $ 120.0     $ 50.0     $ 170.0  
Term Loan B
     350.0       225.0       575.0  
HUD Mortgages
     27.0       7.0       34.0  
Other
     8.0               8.0  
 
                    
Total Senior Secured Debt
   $ 505.0             $ 787.0  
 
                        
7 3/4% Senior Subordinated Notes
   $ 220.0             $ 220.0  
Senior Subordinated Debt
     —       200.0       200.0  
10 5/8% Senior Subordinated Notes
     38.7       (38.7 )     —  
 
                    
Total Debt
   $ 763.7             $ 1,207.0  
 
                        
Stockholder’s Equity
   $ 666.3             $ 666.3  
 
                    
Total Book Capitalization
   $ 1,430.0             $ 1,873.3  
 
                        
 
Credit Statistics
                        
Pro Forma Adjusted LTM EBITDA (4)
   $ 212.5  (2)   $ 48.5  (3)   $ 261.0  
 
                        
Senior Secured Debt / Pro Forma Adj. LTM EBITDA (4)
     2.4x               3.0x  
Total Debt / Pro Forma Adj. LTM EBITDA (4)
     3.6               4.6  
Net Debt / Pro Forma Adj. LTM EBITDA (4)
     3.5               4.6  
Total Debt / Total Capitalization
     53.4 %             64.4 %
 
(1)   $300 million capacity.
 
(2)   Includes PSI LTM and acquisitions completed during 2006 and 2007.
 
(3)   Includes Horizon Health and pro forma adjustments, including $10 million of assumed synergies.
 
(4)   Please refer to Exhibit 99.2 for a Reconciliation of Income from Continuing Operations to Adjusted LTM EBITDA and Pro Forma Adjusted LTM EBITDA.