BRENTWOOD, Tenn., Oct. 9, 2017 /PRNewswire/ -- AAC Holdings,
Inc. (NYSE: AAC) announced it has secured a $65 million acquisition financing commitment from
Credit Suisse Securities (USA) LLC
in conjunction with a senior secured incremental term loan facility
arranged by Credit Suisse Securities (USA) LLC, Deutsche Bank Securities, BMO
Capital Markets Corp. and Whitney
Bank (d/b/a Hancock Bank) which was priced and
allocated on September 22, 2017. Upon
closing, this incremental term loan facility would be issued in
connection with AAC's existing senior secured credit facility that
closed in June 2017 (having a
$210 million term facility and a
$40 million revolving credit
facility) and proceeds from the incremental term loan facility
would be used to fund AAC's proposed acquisition of AdCare, Inc.,
which is anticipated to close in the first half of 2018.
AAC also announced that it increased its revolving credit
facility under its existing senior secured credit facility by
$15 million to $55 million. Proceeds
from the increased revolving credit facility will be used for
general corporate purposes.
The terms of the incremental term loan facility would be
consistent with AAC's existing $210
million senior secured term loan facility that is scheduled
to mature in June 2023 and bears
interest at LIBOR plus 6.75%. The increased revolving credit
facility is scheduled to mature in June
2022 and bears interest at LIBOR plus 6.00%.
On September 13, 2017, AAC
announced a definitive agreement to acquire AdCare, Inc., its
affiliates and associated real estate assets for total
consideration of $85 million. The
AdCare facilities being acquired include a 114-bed hospital for
substance abuse treatment and five outpatients centers in
Massachusetts and a 52-bed
residential treatment center and two outpatient centers in
Rhode Island. The acquisition will
accelerate AAC's longstanding plan to diversify into government
pay, leverage an existing outpatient and business development
presence in New England and continue the expansion of its hospital
strategy.
Michael Cartwright, Chairman and
Chief Executive Officer of AAC Holdings, noted, "We are pleased
with the solid execution and strong demand for the incremental term
loan and increase in the revolver. It was important for us to
secure the necessary financing well in advance of the anticipated
closing in the first half of 2018. We look forward to moving ahead
on our integration plans for AdCare."
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) the ability to
consummate and realize the benefits of the proposed acquisition;
(ii) uncertainties regarding the timing of the closing of the
acquisition; (iii) the failure or inability of either AAC or
AdCare to satisfy closing conditions or obtain approvals necessary
to close the transaction; (iv) unexpected costs or delays
associated with efforts to obtain the regulatory or other approvals
necessary to close the transaction; (v) unexpected
difficulties and expenditures in connection with integration
programs; (vi) risks and uncertainties in litigation or
investigative proceedings, whether or not related to the
transaction; (vii) the availability of financing; and
(viii) incurrence of additional debt in connection with the
transaction, 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.
View original
content:http://www.prnewswire.com/news-releases/aac-holdings-secures-committed-65-million-acquisition-financing-for-adcare-transaction-and-increases-revolving-credit-facility-300533164.html
SOURCE AAC Holdings, Inc.