Atlanta-based GranCare, a post-acute services provider, will receive a new $300 million credit facility, which will replace its current $150 million facility. First Union Capital Markets Corp. and Chase Securities will arrange the new facility, which includes a five-year, $100 million term loan and a five-year, $200 million revolving line of credit. The company said it's replacing the credit facility in connection with the pending merger of its pharmacy subsidiary, TeamCare, with Vitalink Pharmacy Services, which is 82% owned by Gaithersburg, Md.-based ManorCare Health Services. GranCare said that when the merger is completed, proceeds from the new bank line will be used to refinance the company's existing $89 million debt and to redeem an outstanding $60 million issue of debentures.
Citation Computer Systems, a St. Louis-based provider of clinical, financial and administrative information systems, has terminated a proposed common stock offering originally filed with the Securities and Exchange Commission in July. About 2.7 million shares were to be sold, of which 2 million were to be offered by the company and the rest by certain shareholders. Proceeds were to be used to fund Citation's working capital and for general corporate purposes, including company growth plans. In a statement, J. Robert Copper, the company's chairman, president and chief executive officer, said: "We are disappointed that the secondary offering was not completed, but we feel we need to resolve the uncertainty in the marketplace." Citation's stock price had risen 150% this year, reaching $14.13 on Aug. 30 from $5.63 on Dec. 29, 1995. On Oct. 29, the stock closed at $13.75 in NASDAQ trading.