AAC Holdings, Inc. announced it has increased its senior secured credit facility from $121.25 million to $171.25 million, consisting of a $50 million revolving credit facility and a $121.25 million term loan. The facility is scheduled to mature in March 2020 and bears 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 ratio. The facility has an accordion feature that provides for an additional $75 million of borrowing capacity under the credit facility, subject to certain consents and conditions, including obtaining additional commitments from lenders.
The facility is led by Bank of America with Merrill Lynch, Pierce, Fenner & Smith and SunTrust Robinson Humphrey as Joint Bookrunners and Joint Lead Arrangers and includes BMO Harris Bank, Raymond James, Hancock / Whitney, Texas Capital, Capital Bank, Reliant Bank and Franklin Synergy.
Michael Cartwright, Chairman and Chief Executive Officer of AAC Holdings, noted, “The support of our bank group has been instrumental in providing the funding that allows us to continue our growth plan and delivering on the passion and commitment for treating individuals and families struggling with addiction. This additional borrowing capacity will enable us to move forward with growing our de novo pipeline and pursuing acquisition opportunities that further our strategy of diversification by geography, payor mix and treatment modalities. We welcome the addition of new syndicate members Hancock / Whitney, Capital Bank and Franklin Synergy and greatly appreciate the increased credit support from our existing bank members.”
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