BRENTWOOD, Tenn., June 30, 2017 /PRNewswire/ -- AAC Holdings,
Inc. (NYSE: AAC) announced it has closed a new $210.0 million
senior secured term loan facility and $40.0
million revolving credit facility. Proceeds from the new
term loan and a portion of the revolving credit facility were used
to payoff existing term and revolving facilities maturing in
March 2020 as well as convertible and
subordinated notes held by affiliates of Deerfield Management
Company, L.P.
The senior secured term loan facility is scheduled to mature in
June 2023, bears interest at LIBOR
plus 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
plus 6.00% and has $15 million of
incremental borrowing ability subject to certain consents and
conditions, including obtaining additional commitments from
lenders.
The credit facilities are led by Credit Suisse with Joint Lead
Arrangers BMO Capital Markets and Hancock Whitney Bank.
Michael Cartwright, Chairman and
Chief Executive Officer of AAC Holdings, noted, "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. We anticipate that the incremental
borrowing ability will provide better access to future debt
capital, and that this transaction will leave us well positioned to
finance AAC's continued growth."
About American Addiction Centers
American Addiction
Centers is a leading provider of inpatient and outpatient substance
abuse treatment services. We treat clients who are struggling with
drug addiction, alcohol addiction, and co-occurring
mental/behavioral health issues. We currently operate substance
abuse treatment facilities located throughout the United States. These facilities are
focused on delivering effective clinical care and treatment
solutions. For more information, please find us at
AmericanAddictionCenters.org or follow us on Twitter
@AAC_Tweet.
Forward Looking Statements
This release contains
forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements are made only as
of the date of this release. In some cases, you can identify
forward-looking statements by terms such as "anticipates,"
"believes," "could," "estimates," "expects," "may," "potential,"
"predicts," "projects," "should," "will," "would," and similar
expressions intended to identify forward-looking statements,
although not all forward-looking statements contain these words.
Forward-looking statements may include information concerning AAC
Holdings, Inc.'s (collectively with its subsidiaries; "Holdings" or
the "Company") possible or assumed future results of operations,
including descriptions of Holdings' revenues, profitability,
outlook and overall business strategy. These statements involve
known and unknown risks, uncertainties and other factors that may
cause our actual results and performance to be materially different
from the information contained in the forward-looking statements.
These risks, uncertainties and other factors include, without
limitation: (i) our inability to operate our facilities; (ii) our
reliance on our sales and marketing program to continuously attract
and enroll clients; (iii) a reduction in reimbursement rates by
certain third-party payors for inpatient and outpatient services
and point of care and definitive lab testing; (iv) an increase in
our provision for doubtful accounts based on the aging of
receivables; (v) our failure to successfully achieve growth
through acquisitions and de novo expansions; (vi) uncertainties
regarding the timing of the closing of acquisitions; (vii) the
possibility that a governmental entity may prohibit, delay or
refuse to grant approval for the consummation of an acquisition;
(viii) our failure to achieve anticipated financial results from
prior acquisitions; (ix) a disruption in our ability to perform
definitive drug testing services; (x) maintaining compliance with
applicable regulatory authorities, licensure and permits to operate
our facilities and lab; (xi) a disruption in our business and
reputation and potential economic consequences with the civil
securities claims brought by shareholders; (xii) our inability to
meet our covenants in the loan documents; (xiii) our inability to
integrate newly acquired facilities; and (xiv) general economic
conditions, as well as other risks discussed in the "Risk Factors"
section of the Company's Annual Report on Form 10-K, and other
filings with the Securities and Exchange Commission. As a result of
these factors, we cannot assure you that the forward-looking
statements in this release will
prove to be accurate. Investors should not place undue reliance
upon forward looking statements.
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SOURCE AAC Holdings, Inc.