
Note 18.	Subsequent Event

Acquisition of Harden Healthcare Holdings, Inc.

On October 18, 2013, the Company completed the acquisition of Harden and its home health, hospice and community care businesses, pursuant to an Agreement and Plan of Merger dated as of September 18, 2013, for an aggregate purchase price of approximately $408.8 million, consisting of approximately $355.0 million in cash and $53.8 million in shares of Gentiva's common stock. The initial accounting for the business combination is incomplete, and it is not practicable for the Company to provide the pro forma revenues and earnings of the combined entity at this time. This information will be included in the Company’s 2013 Annual Report on Form 10-K to be filed with SEC.

During the nine months ended September 30, 2013, the Company expensed $1.5 million of transaction costs in connection with the Company's acquisition of Harden, which are included in selling, general and administrative expenses in the Company's consolidated statement of comprehensive income (loss).

New Credit Agreement

On October 18, 2013, in connection with the acquisition of Harden, the Company entered into a new Senior Secured Credit Agreement providing for (i) a six year $670 million Term Loan B facility, (ii) a five year $155 million Term Loan C facility and (iii) a five year $100 million revolving credit facility, which replaced the Company's existing credit facilities. The new Credit Agreement’s revolving credit facility also includes borrowing capacity of $80 million available for letters of credit and $15 million for borrowings on same-day notice, referred to as swing line loans. Borrowings under the new Credit Agreement bear interest at (a) an applicable margin plus a base rate determined by reference to the highest of a (i) “prime rate”, (ii) federal funds rate plus 0.50% or (iii) LIBOR rate adjusted for certain costs plus 1.00% or (b) an applicable margin plus a LIBOR rate adjusted for certain costs. The Term Loan B facility is subject to annual principal payments of 1 percent payable in equal quarterly installments and the Term Loan C facility is subject to increasing annual principal payments, payable in quarterly installments.

For further information on the Company's new Senior Secured Credit Agreement, see Item 2.03 in the Company's Form 8-K filed with the SEC on October 27, 2013.