AAC Holdings secured a $65 million acquisition financing commitment from Credit Suisse Securities (USA) in conjunction with a senior secured incremental term loan facility arranged by Credit Suisse Securities (USA), Deutsche Bank Securities, BMO Capital Markets and Whitney Bank (d/b/a Hancock Bank) which was priced and allocated on September 22, 2017.
Upon closing, the incremental term loan facility will 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 will be used to fund AAC’s proposed acquisition of AdCare, which is anticipated to close in the first half of 2018.
AAC also 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 + 6.75%. The increased revolving credit facility is scheduled to mature in June 2022 and bears interest at LIBOR + 6.00%.
Michael Cartwright, chairman and CEO 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.”
AAC (American Addiction Centers) provides inpatient and outpatient substance abuse treatment services.