BRENTWOOD, Tenn., June 5, 2017 /PRNewswire/ -- AAC Holdings,
Inc. (NYSE: AAC) announced its intention to seek a new senior
secured term loan facility of up to $210
million and a new senior secured revolving credit facility
of up to $55 million, subject to
market and other conditions. AAC expects to use the proceeds of the
new facilities to refinance certain existing debt and to pay
transaction fees and expenses. The objectives of the refinancing
and credit facility expansion are to improve financial flexibility,
liquidity and cash flow, increase access to capital and to extend
its weighted average debt maturity. The terms of the
potential refinancing will be disclosed upon the completion of the
transaction, which is anticipated to occur in late June 2017. There can be no assurance that the
closing of the new facilities will occur.
About American Addiction Centers
American Addiction
Centers is a leading provider of inpatient and outpatient substance
abuse treatment services. We treat clients who are struggling with
drug addiction, alcohol addiction, and co-occurring
mental/behavioral health issues. We currently operate substance
abuse treatment facilities located throughout the United States. These facilities are
focused on delivering effective clinical care and treatment
solutions. For more information, please find us at
AmericanAddictionCenters.org or follow us on Twitter
@AAC_Tweet.
Forward Looking Statements
This release contains
forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements are made only as
of the date of this release. In some cases, you can identify
forward-looking statements by terms such as "anticipates,"
"believes," "could," "estimates," "expects," "may," "potential,"
"predicts," "projects," "should," "will," "would," and similar
expressions intended to identify forward-looking statements,
although not all forward-looking statements contain these words.
Forward-looking statements may include information concerning AAC
Holdings, Inc.'s (collectively with its subsidiaries; "Holdings" or
the "Company") possible or assumed future results of operations,
including descriptions of Holdings' revenues, profitability,
outlook and overall business strategy. These statements involve
known and unknown risks, uncertainties and other factors that may
cause our actual results and performance to be materially different
from the information contained in the forward-looking statements.
These risks, uncertainties and other factors include, without
limitation: (i) our inability to operate our facilities; (ii) our
reliance on our sales and marketing program to continuously attract
and enroll clients; (iii) a reduction in reimbursement rates by
certain third-party payors for inpatient and outpatient services
and point of care and definitive lab testing; (iv) an increase in
our provision for doubtful accounts based on the aging of
receivables; (v) our failure to successfully achieve growth
through acquisitions and de novo expansions; (vi) uncertainties
regarding the timing of the closing of acquisitions; (vii) the
possibility that a governmental entity may prohibit, delay or
refuse to grant approval for the consummation of an acquisition;
(viii) our failure to achieve anticipated financial results from
prior acquisitions; (ix) a disruption in our ability to perform
definitive drug testing services; (x) maintaining compliance with
applicable regulatory authorities, licensure and permits to operate
our facilities and lab; (xi) a disruption in our business and
reputation and potential economic consequences with the civil
securities claims brought by shareholders; (xii) our inability to
agree on conversion and other terms for the balance of convertible
debt; (xiii) our inability to meet our covenants in the loan
documents; (xiv) our inability to obtain senior lender consent to
exceed the current $50 million limit
in unsecured subordinated debt; (xv) our inability to integrate
newly acquired facilities; and (xvi) general economic conditions,
as well as other risks discussed in the "Risk Factors" section of
the Company's Annual Report on Form 10-K, and other filings with
the Securities and Exchange Commission. As a result of these
factors, we cannot assure you that the forward-looking statements
in this release will prove to be accurate. Investors should not
place undue reliance upon forward looking statements.
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SOURCE AAC Holdings, Inc.