AdaptHealth Corp. Announces $300 Million Expansion of Its Credit Facilities to Fund Anticipated M&A Activity
April 26 2021 - 6:30AM
Business Wire
AdaptHealth Corp. (NASDAQ: AHCO) (“AdaptHealth” or the
“Company”), a national leader in providing patient-centric and
technology-enabled chronic disease management solutions including
home healthcare equipment, medical supplies to the home and related
services in the United States announced today that it has amended
its senior secured credit facilities to increase its term loan by
$100 million and to expand the maximum borrowing capacity under its
revolving credit facility from $250 million to $450 million. The
primary use of proceeds of the additional term loan will be to
repay all existing revolving credit borrowings and the entire $450
million revolving credit facility will be available to the Company
to fund acquisitions and for general corporate purposes. The
principal terms of the senior secured credit facilities, including
interest rates, principal amortization and covenants remain
unchanged.
Steve Griggs, Co-CEO of AdaptHealth commented, “We appreciate
the support of the Company’s lenders as we continue to execute on
the Company’s growth strategy. Building on the combination of
AdaptHealth and AeroCare in February 2021, we are seeing sustained
opportunities to continue our growth through strategic and
accretive acquisitions in all of our core businesses. The
additional funding is critical to our ability to move quickly and
capitalize on these opportunities. Having completed 245
acquisitions on a combined basis since 2012 (85 completed by
AdaptHealth and 160 by AeroCare), I’m very confident that our
acquisition program will continue to substantially contribute to
AdaptHealth’s future financial success. ”
Josh Parnes, President of AdaptHealth also commented, “We are
also very pleased at the progress we have made integrating the
operations of AdaptHealth and AeroCare. We are confident that those
integration efforts will enhance our ability to integrate future
acquisitions on to our best-in-class technology platforms and drive
internal process and operating efficiencies.”
Regions Capital Markets, a division of Regions Bank, acted as
Lead Arranger and sole Administrative Agent in connection with the
incremental senior secured credit facility, and Citizens Bank, N.A.
and Truist Securities, Inc. acted as Joint Lead Arrangers on the
credit agreement expansion.
About AdaptHealth Corp.
AdaptHealth is a national leader in providing patient-centric
and technology enabled chronic disease management solutions
including home healthcare equipment, medical supplies to the home
and related services in the United States. AdaptHealth provides a
full suite of medical products and solutions designed to help
patients manage chronic conditions in the home, adapt to life and
thrive. Product and services offerings include (i) sleep therapy
equipment, supplies and related services (including CPAP and bi PAP
services) to individuals suffering from obstructive sleep apnea,
(ii) medical devices and supplies to patients for the treatment of
diabetes (including continuous glucose monitors and insulin pumps),
(iii) home medical equipment (HME) to patients discharged from
acute care and other facilities, (iv) oxygen and related chronic
therapy services in the home, and (v) other HME medical devices and
supplies on behalf of chronically ill patients with wound care,
urological, incontinence, ostomy and nutritional supply needs. The
Company is proud to partner with an extensive and highly
diversified network of referral sources, including acute care
hospitals, sleep labs, pulmonologists, skilled nursing facilities,
and clinics. AdaptHealth services beneficiaries of Medicare,
Medicaid and commercial insurance payors. AdaptHealth services
nearly 3 million patients annually in all 50 states through its
network of over 500 locations in 46 states. Learn more at
www.adapthealth.com.
Forward-Looking
Statements
This press release includes certain statements that are not
historical facts but are forward-looking statements for purposes of
the safe harbor provisions under the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” “should,” “would,” “plan,” “predict,” “potential,”
“seem,” “seek,” “future,” “outlook,” and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding projections,
estimates and forecasts of revenue and other financial and
performance metrics and projections of market opportunity and
expectations and the Company’s acquisition pipeline. These
statements are based on various assumptions and on the current
expectations of AdaptHealth management and are not predictions of
actual performance. These forward-looking statements are provided
for illustrative purposes only and are not intended to serve as,
and must not be relied on, by any investor as, a guarantee, an
assurance, a prediction or a definitive statement of fact or
probability. Actual events and circumstances are difficult or
impossible to predict and will differ from assumptions. Many actual
events and circumstances are beyond the control of the Company.
These forward-looking statements are subject to a number of
risks and uncertainties, including the outcome of judicial and
administrative proceedings to which the Company may become a party
or governmental investigations to which the Company may become
subject that could interrupt or limit the Company’s operations,
result in adverse judgments, settlements or fines and create
negative publicity; changes in the Company’s clients’ preferences,
prospects and the competitive conditions prevailing in the
healthcare sector; and the impact of the recent coronavirus
(COVID-19) pandemic and the Company’s response to it. A further
description of such risks and uncertainties can be found in the
Company’s filings with the Securities and Exchange Commission. If
the risks materialize or assumptions prove incorrect, actual
results could differ materially from the results implied by these
forward-looking statements. There may be additional risks that the
Company presently knows or that the Company currently believes are
immaterial that could also cause actual results to differ from
those contained in the forward-looking statements. In addition,
forward-looking statements reflect the Company’s expectations,
plans or forecasts of future events and views as of the date of
this press release. The Company anticipates that subsequent events
and developments will cause the Company’s assessments to change.
However, while the Company may elect to update these
forward-looking statements at some point in the future, the Company
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing the Company’s assessments as of any date subsequent to
the date of this press release. Accordingly, undue reliance should
not be placed upon the forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20210426005374/en/
AdaptHealth Corp. Jason Clemens, CFA Chief Financial
Officer (484) 301-6599 jclemens@adapthealth.com
Brittany Lett Vice President, Marketing (909) 915-4983
blett@adapthealth.com
The Equity Group Inc. Devin Sullivan Senior Vice
President (212) 836-9608 dsullivan@equityny.com
Kalle Ahl, CFA Vice President (212) 836-9614
kahl@equityny.com
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