AAC Holdings closed a new $210 million senior secured term loan facility and $40 million revolving credit facility. Proceeds from the new term loan and a portion of the revolving credit facility were used to pay off existing term and revolving facilities maturing in March 2020 and convertible and subordinated notes held by affiliates of Deerfield Management.
The senior secured term loan facility is scheduled to mature in June 2023, bears interest at LIBOR + 6.75% and has incremental borrowing ability subject to certain consents and conditions, including obtaining additional commitments from lenders. The revolving facility is scheduled to mature in June 2022, bears interest at LIBOR + 6.00% and has $15 million of incremental borrowing ability subject to certain consents and conditions, including obtaining additional commitments from lenders.
Credit Suisse served as administrative agent and was joint lead arranger with BMO Capital Markets and Hancock Whitney Bank.
Michael Cartwright, chairman and CEO of AAC Holdings, said, “The new credit facilities enable us to simplify our capital structure, improve our financial flexibility and increase our liquidity. We believe that the favorable leverage ratio and fewer covenants, as well as the decreased amortization schedule and extended debt maturities, will facilitate the continued execution of our growth strategy with a positive benefit to cash flow.”
Brentwood, TN-based American Addiction Centers provides inpatient and outpatient substance abuse treatment services.