BRENTWOOD, Tenn., Aug. 7, 2017 /PRNewswire/ -- AAC Holdings,
Inc. (NYSE: AAC) has signed a definitive agreement to sell its two
standalone outpatient facilities and two sober living facilities in
Las Vegas, Nevada and Arlington, Texas for $25 million in cash to MedEquities Realty Trust,
Inc. (NYSE: MRT). Concurrently with the sale, the Company will
lease the facilities from MedEquities pursuant to a 15-year
triple-net lease at an initial lease rate of 8.75%. AAC expects to
deploy the proceeds to pay down borrowings on its revolving credit
facility and fund its de novo activities. The transaction is
expected to close by August 11, 2017,
subject to customary closing conditions.
The AAC facilities that are included in the sale are the two
standalone outpatient treatment facilities in Las Vegas, Nevada and Arlington, Texas; a 110-bed sober living
facility in Las Vegas; and a
56-bed sober living facility in Arlington that is expected to expand to 131
beds by mid-year 2018. These four facilities support AAC's flagship
inpatient residential treatment facilities, Desert Hope in
Las Vegas and Greenhouse in
Arlington.
"This transaction unlocks the value in the outpatient and sober
living operations we have created in our Las Vegas and Arlington platforms together with our Desert
Hope and Greenhouse facilities," noted Michael Cartwright, Chairman and Chief Executive
Officer of AAC Holdings, Inc. "This capital will help us reduce
leverage and fund our de novo and bed expansion activity for 2017
and 2018."
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 meet our covenants in the loan
documents; (xiii) our inability to integrate newly acquired
facilities; and (xiv) 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.