PLYMOUTH MEETING, Pa. - AdaptHealth Corp. (NASDAQ: NASDAQ:AHCO), a provider of home healthcare solutions, has secured a new $950 million senior secured credit facility. The facility includes a $650 million Term Loan A and a $300 million revolving line of credit.
The company utilized the proceeds from the Term Loan to repay its existing Term Loan, which was due in January 2026, without incurring penalties. The new Revolver, which is smaller than the previous $450 million facility, will reduce undrawn commitment fees, reflecting a strategic financial restructuring.
AdaptHealth's new credit arrangement comes with a lower interest rate compared to the previous bank credit facility and extends the maturity date to September 13, 2029.
This refinancing was supported by a consortium of 13 lenders, with Regions Bank serving as the Administrative Agent. Regions Capital Markets, BOFA Securities, Inc., Capital One, Citizens Bank, Fifth Third Bank, JPMorgan Chase (NYSE:JPM), and Truist Securities, Inc. were the Joint Lead Arrangers and Joint Bookrunners for the transaction.
AdaptHealth is known for its broad range of medical products and services, which are designed to support patients managing chronic conditions at home. The company has a significant footprint across the United States, with a network of approximately 680 locations in 47 states, serving around 4.2 million patients annually.
The information disclosed is based on a press release statement from AdaptHealth Corp.
In other recent news, AdaptHealth Corp. reported key developments in its operations and financial performance. The company announced the appointment of Scott Barnhart as Chief Operating Officer, a move aimed at enhancing operational excellence. This followed an executive role shift for the previous COO, Shaw Rietkerk, who will transition to the role of Chief Business Officer by the end of September 2024.
AdaptHealth Corp. reported a 1.6% year-over-year increase in net revenue for Q2 2024, with an adjusted EBITDA of $165.3 million. The company's full-year guidance projects net revenue to be between $3.255 and $3.315 billion, and adjusted EBITDA between $660 and $700 million.
UBS maintained its Buy rating on AdaptHealth, citing the company's stable fundamentals and consistent margins. The company also divested its underperforming rehabilitation business and sold some of its custom rehab technology assets to National Seating and Mobility. These strategic moves are part of AdaptHealth's efforts to enhance efficiency and customer satisfaction.
InvestingPro Insights
AdaptHealth Corp. (NASDAQ: AHCO) has displayed strategic financial acumen with its new $950 million senior secured credit facility, aimed at optimizing its capital structure. The move to refinance its existing debt under more favorable terms underscores the company's proactive approach to managing its financial health. To provide a deeper understanding of AdaptHealth's current financial position and future prospects, here are some insights based on real-time data and analysis from InvestingPro:
InvestingPro Data shows that AdaptHealth has a market capitalization of $1.42 billion, reflecting its size and presence in the home healthcare market. Despite a negative P/E Ratio of -2.13, which indicates the company was not profitable over the last twelve months, the adjusted P/E Ratio for the last twelve months as of Q2 2024 is projected at 16.39, suggesting that analysts expect profitability in the near future. This aligns with an InvestingPro Tip indicating that net income is expected to grow this year.
The company's revenue has been growing steadily, with a 6.05% increase over the last twelve months as of Q2 2024, and a more modest quarterly growth rate of 1.6%. This growth is supported by a solid gross profit margin of 18.32% and an operating income margin of 8.84%, demonstrating the company's ability to maintain profitability in its operations.
InvestingPro Tips also highlight that management has been aggressively buying back shares, which often reflects confidence in the company's future performance and can be a positive signal to investors. Moreover, the company's valuation implies a strong free cash flow yield, which is an attractive feature for investors looking for companies with the potential to generate significant cash post-expenses.
For readers interested in more in-depth analysis, there are additional InvestingPro Tips available for AdaptHealth, which can provide further insights into the company's financials and projections. Visit https://www.investing.com/pro/AHCO to explore these valuable resources.
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