Company News »

AAC Holdings, Inc. Completes $125 Million Credit Facility

Business Wire
Share on StockTwits
Published on

AAC Holdings, Inc. (NYSE:AAC) announced the closing of a $125 million senior secured credit facility, consisting of a $50 million revolving credit facility and a $75 million term loan. The facility matures in March 2020 and amounts outstanding under the credit facility bear 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. The facility also has an accordion feature that allows the total borrowing capacity under the credit facility to be increased up to $200 million, subject to certain conditions, including obtaining additional commitments from lenders.

The facility is led by Bank of America Merrill Lynch and SunTrust Robinson Humphrey as Joint Bookrunners and Joint Lead Arrangers and includes BMO Harris Bank, N.A., an affiliate of Bank of Montreal, Raymond James Bank, Texas Capital Bank, Western Alliance Bank and Reliant Bank.

Michael Cartwright, Chairman and Chief Executive Officer of AAC Holdings, noted, “We have an active pipeline of de novo projects and acquisitions. The new facility and its attractive pricing enhance the flexibility of our balance sheet to continue executing these growth strategies. We appreciate the support from this strong syndicate of healthcare lenders.”

About American Addiction Centers

American Addiction Centers is a leading provider of inpatient substance abuse treatment services. We treat adults as well as adolescents who are struggling with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues. We operate eight substance abuse treatment facilities and one mental health facility specializing in overeating disorders. Located throughout the United States, these facilities are focused on delivering effective clinical care and treatment solutions.

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’ possible or assumed future results of operations, including descriptions of AAC 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; (iv) our failure to successfully achieve growth through acquisitions and de novo expansions; and (v) general economic conditions, as well as other risks discussed in the “Risk Factors” section of the Company’s registration statement on Form S-1, as amended, 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.

Share on StockTwits


Iron FX 1.11156/1.11128 2.8
XM Markets 1.09948/1.09928 2
FxPro 1.10184/1.10171 1.3
FXCM 1.13943/1.13912 3.1