Summit Health Gets Financing Commitment

Summit Health Ltd. in Burbank said it has obtained a commitment from Citicorp USA for $35 million in financing, part of which Summit will use to pay off certain debts.

Summit, which operates hospitals and other health-care facilities, said the financing from the New York-based lender will include loans, revolving accounts and a letter of credit. Summit plans to use the funds from Citicorp to redeem $24.8 million in outstanding senior notes issued in 1985 and bearing an interest rate of 14%.

As a result, Summit said it expected to post a one-time charge of about $1.2 million for its fiscal fourth quarter ended June 30. For its fiscal third quarter ended March 31, Summit posted net income of $3.8 million on revenue of $119.4 million.