SOURCE: TLC Vision Corporation

TLC Vision Corporation

October 01, 2009 16:19 ET

TLCVision Secures Extension of Credit Facility Limited Waiver to October 13, 2009

ST. LOUIS, MO--(Marketwire - October 1, 2009) - TLC Vision Corporation (NASDAQ: TLCV) (TSX: TLC), North America's premier eye care services company, today announced that it has secured from its lenders holding a majority amount of its secured credit facility, an extension to October 13, 2009 of the previously announced limited waiver with respect to its credit facility that expired on September 30, 2009, along with a forbearance with respect to certain payment obligations under the facility.

The credit agreement, dated June 21, 2007, as amended, provides for a US$85 million term loan and a US$25 million revolving credit line. As of September 30, 2009, the principal amount outstanding under the credit facility was approximately US $100.1 million.

The extension and forbearance agreement is contained in the limited waiver, dated as of September 30, 2009, which, among other things, provides a limited waiver through October 13, 2009 of specified defaults and extends to October 14, 2009, the time for payment of certain principal, interest and other payments previously due, provided, however, that in the event that the limited waiver is executed by less than 100% of the lenders, the limited waiver provides that lenders will, until October 13, 2009, forbear from exercising their rights arising out of the non-payment of certain principal, interest and other payments previously due. The limited waiver provides that lenders holding a majority amount of the secured credit facility may, in their sole discretion, extend the waiver period to October 30, 2009.

The agreement also provides for the Company to negotiate in good faith and use its best efforts to agree by October 26, 2009 to (i) documentation for additional debt financing acceptable to lenders representing a majority of the outstanding debt under the credit agreement, and (ii) documentation for an overall debt and/or equity restructuring acceptable to the credit agreement lenders under applicable law.

A copy of the limited waiver will be included as an exhibit to a Form 8-K to be filed promptly by the Company.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, Section 21E of the U.S. Securities Exchange Act of 1934 and Canadian Provincial Securities Laws, which statements can be identified by the use of forward-looking terminology, such as "may," "will," "expect," "intend," "anticipate," "estimate," "predict," "plans" or "continue" or the negative thereof or other variations thereon or comparable terminology referring to future events or results. We caution that all forward-looking information is inherently uncertain and that actual results may differ materially from the assumptions, estimates or expectations reflected in the forward-looking information. A number of factors could cause actual results to differ materially from those in forward-looking statements, including but not limited to economic conditions, the level of competitive intensity for laser vision correction, the market acceptance of laser vision correction, concerns about potential side effects and long term effects of laser vision correction, the ability to maintain agreements with doctors on satisfactory terms, quarterly fluctuation of operating results that make financial forecasting difficult, the volatility of the market price of our common shares, profitability of investments, successful execution of our direct-to-consumer marketing programs, the ability to open new centers, the reliance on key personnel, medical malpractice claims and the ability to maintain adequate insurance therefore, claims for federal, state and local taxes, compliance with industry regulation, compliance with U.S. and Canadian healthcare regulations, disputes regarding intellectual property, many of which are beyond our control.

Therefore, should one or more of theses risks materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary significantly from what we currently foresee. Accordingly, we warn investors to exercise caution when considering any such forward-looking information herein and to not place undue reliance on such statements and assumptions. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any forward-looking statements or assumptions whether as a result of new information, future events or otherwise, except as required by law.

See the Company's reports filed with the Canadian Securities Regulators and the U.S. Securities and Exchange Commission from time to time for cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties, that could cause actual results to differ materially from results referred to in forward-looking statements. TLCVision assumes no obligation to update the information contained in this press release.

About TLCVision

TLCVision is North America's premier eye care services company, providing eye doctors with the tools and technologies needed to deliver high-quality patient care. Through its centers' management, technology access service models, extensive optometric relationships, direct to consumer advertising and managed care contracting strength, TLCVision maintains leading positions in Refractive, Cataract and Eye Care markets. Information about vision correction surgery can be found on the TLC Laser Eye Centers' website

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