AAC Holdings closed of a $125 million senior secured credit facility, consisting of a $50 million revolving credit facility and a $75 million term loan. The facility is led by Bank of America Merrill Lynch and SunTrust Robinson Humphrey as joint bookrunners and joint lead arrangers and includes BMO Harris Bank, an affiliate of Bank of Montreal, Raymond James Bank, Texas Capital Bank, Western Alliance Bank and Reliant Bank.
The facility matures in March 2020 and amounts outstanding under the credit facility bear interest at LIBOR plus a margin between 2.25% to 3.25% or a base rate plus a margin between 1.25% and 2.25%, in each case depending on the company’s leverage. The facility also has an accordion feature that allows the total borrowing capacity under the credit facility to be increased up to $200 million, subject to certain conditions, including obtaining additional commitments from lenders.
Michael Cartwright, chairman and CEO of AAC Holdings, noted, “We have an active pipeline of de novo projects and acquisitions. The new facility and its attractive pricing enhance the flexibility of our balance sheet to continue executing these growth strategies. We appreciate the support from this strong syndicate of healthcare lenders.”
American Addiction Centers is a provider of inpatient substance abuse treatment services.