Capital One announced that it served as the agent, joint lead arranger, and sole bookrunner for a $269.6 million senior credit facility—consisting of a $250 million cash-flow-based revolver and a $19.6 million delayed-draw term loan—for Addus HomeCare.

Addus HomeCare provides comprehensive personal care services for consumers at home that assist with activities of daily living, as well as hospice and home health services. Addus’ consumers are primarily people would be at risk of hospitalization or institutionalization without the services that Addus provides, such as the elderly, chronically ill and disabled. As one of the country’s leading homecare providers, Addus serves approximately 39,000 consumers through 156 locations across 24 states.

The new facility doubles the size of Addus’ available revolving credit line and will be used for organic growth and acquisitions. Since Addus completed its first facility with Capital One in May 2017, it has made numerous acquisitions, including, most recently, the operations of Arcadia Home Care & Staffing, a Southfield, Michigan-based provider of home care services and Ambercare, a personal care, hospice and home health services with 15 locations in New Mexico.

“Addus is one of the most sophisticated providers in this growing but highly fragmented space,” said Jeff Hoffman, Managing Director, Capital One Healthcare. “This credit facility gives Addus the capacity to benefit from an increasingly robust pipeline, and to add density in existing states and enter new ones.” 

Capital One provided a flexible loan structure including $100 million in incremental term debt that will enable Addus to fund acquisitions quickly.

“We appreciate Capital One’s interest in tailoring the credit transaction to our needs,” said Dirk Allison, Addus President and Chief Executive Officer. “Their support has been an important factor in our ability to continue to meet our growth strategy.”