Bank Lenders Hike Troubled Apria’s Borrowing Rate

Apria Healthcare Group Inc. said Thursday that its bank lenders required it to pay a higher interest rate and put up additional collateral to extend a major credit agreement.

The Costa Mesa home health-care company expects to pay about 0.75 percentage points more on its $400-million bank agreement, said Sheree L. Aronson, the company’s director of investor relations.

The bank group, led by Bank of America and NationsBank, required the company post security property such as medical equipment it rents to patients and accounts receivable, she said.

Apria had to renegotiate the loan after its $238-million loss for the fourth quarter caused it to go into default. The amended agreement reduces the company’s borrowing limit to $400 million, from $450 million. The company has used up $350 million of the credit line.

Aronson said the company expects to use some of the cash to reduce the credit line.