UPDATE 1-Psychiatric Solutions extends credit facility

* Extends remaining $100 mln revolving credit facility to 2011

* Sees 2009 EPS from cont ops of $2.16 to $2.24

Sept 30 (Reuters) - Psychiatric Solutions Inc PSYS.O, a provider of in-patient psychiatric facilities, said it extended the maturity of its entire $300 million revolving credit facility to the end of 2011 from Dec. 21, 2009.

In February, the company had extended the maturity of $200 million of the facility to Dec. 31, 2011. As of June 30, the company had cash and cash equivalents of $14.3 million.

The extension of the facility combined with free cash flow, allows the company to continue adding new beds through acquisitions and internal development, it said.

Earlier this month, Chief Financial Officer Brent Turner told Reuters that the company has an active pipeline of acquisitions and is looking to add to its facilities. [ID:nWNAB7333]

The company also adjusted its financial outlook for 2009 to reflect the sale of its employee assistance programs (EAP) business. In July, the company agreed to sell its EAP business for about $70 million to health insurer Aetna Inc (AET.N) and the deal is expected to close in the fourth quarter of 2009.

The company now sees 2009 earnings from continuing operations per share of $2.16 to $2.24 compared with its previous range of $2.24 to $2.32.

Due to greater interest expense savings in 2010 resulting from the sale of the EAP business, the company said it expects the net impact of the sale on 2010 earnings from continuing operations to be in a range of 4 cents to 6 cents per share.

Shares of Psychiatric Solutions closed at $26.52 Tuesday on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Aradhana Aravindan)