AdaptHealth Corp. (NASDAQ: AHCO) has recently announced the successful refinancing of its senior secured credit facility, leading to an extended maturity and reduced cost of debt. The company closed a $950 million senior secured credit facility, with a fully funded $650 million Term Loan A and a $300 million revolving line of credit.
The proceeds from the new $650 million Term Loan were used to fully repay the company's existing Term Loan, which was originally due to reach final maturity in January 2026. The new $300 million Revolver replaced the company's existing $450 million revolving credit facility, which had no balance drawn at the time the Credit Facility closed, leading to decreased undrawn commitment fees.
Interest rate pricing for the new senior secured credit facility decreased from the interest rate pricing in AdaptHealth's existing bank credit facility, and the new maturity has been extended up to September 13th, 2029.
The refinancing involved a total of 13 lenders, including Regions Bank as Administrative Agent, and Regions Capital Markets, a division of Regions Bank, BOFA Securities, Inc., Capital One, National Association, Citizens Bank, N.A., Fifth Third Bank, National Association, JPMorgan Chase, N.A., and Truist Securities, Inc., who acted as Joint Lead Arrangers and Joint Bookrunners.
AdaptHealth Corp. is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services. The company provides a full suite of medical products and solutions designed to help patients manage chronic conditions in the home, adapt to challenges in their activities of daily living, and thrive. The Company services beneficiaries of Medicare, Medicaid, and commercial insurance payors, reaching approximately 4.2 million patients annually in all 50 states through its network of approximately 680 locations in 47 states.
These changes in the company's credit facility reflect its commitment to optimizing its financial position and reducing costs, ultimately ensuring a strong financial foundation for its future operations. As a result of these announcements, the company's shares have moved 4.8% on the market, and are now trading at a price of $11.43. If you want to know more, read the company's complete 8-K report here.
