Westworld’s Credit Line Extended by Lenders

Westworld Community Healthcare Inc. said its three lenders have agreed to expand its existing revolving line of credit in a move designed to increase the Lake Forest-based company’s working capital.

The company, which operates a series of rural hospitals and health clinics, declined to disclose details of the new credit arrangement with the Bank of America, National Westminster Bank and the Austin, Texas-based M Bank. But Michael Dunn, Westworld’s chairman, president and chief executive, said the company now will have “significantly more” credit than the $50 million it had under the previous agreement.

The additional money, Dunn said, will be used in part to purchase diagnostic instruments and other equipment for Westworld’s out-patient facilities.

Despite steep increases in Westworld’s interest payments this year, the new credit line will do nothing to reduce debt service, Dunn said. During the six months ended June 30, interest payments, primarily on bank debt, increased 281% contrasted with last year to $6.1 million.