Adeptus Health, the largest operator of freestanding emergency rooms in the U.S., announced it closed on $175 million of new senior secured credit facilities.

Adeptus said Bank of America Merrill Lynch served as administrative agent. Bank of Montreal and SunTrust Bank served as co-syndication agents. Merrill Lynch, BMO Capital Markets and SunTrust Robinson Humphrey served as joint lead arrangers and joint bookrunners. Five other banks completed the bank group providing the credit facility, including Regions Bank and Fifth Third Bank which served as co-documentation agents.

The new senior credit facilities include a $50 million revolving facility and a $125 million term loan facility. Both facilities have five-year terms. Subject to certain conditions, Adeptus Health also has the opportunity to increase the size of the senior credit facilities by up to an additional $50 million. Borrowings under the new credit facilities bear interest, at the company’s option, at a rate equal to an applicable margin over (a) a base rate determined by reference to the highest of (1) the prime rate, (2) the federal funds rate plus 0.50% and (3) the Eurodollar rate plus 1.0%, or (b) the Eurodollar rate for the applicable period. The applicable margin ranges from 2.25% to 3.00% for base rate loans and from 3.25% to 4.00% for Eurodollar loans depending on the Company’s leverage ratio. The initial applicable margin for Eurodollar loans will be 3.75%.

The company used the proceeds of the new term loan to repay its existing senior secured credit facility which was due to mature on October 31, 2018. The interest rate on the outstanding debt under this credit facility was LIBOR plus 7.5% with a LIBOR floor of 1.0%.

“I am pleased to announce these new credit facilities, which both lower our borrowing costs and provide us with greater flexibility as we continue to execute on our growth strategy,” said Thomas S. Hall, chairman and CEO of Adeptus Health. “Through our innovative and scalable emergency care delivery model and partnerships with leading healthcare systems, we are expanding access to the highest quality emergency medical care in more communities and states. These credit facilities help ensure that we have the resources in place to sustain our growth momentum going forward.”