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AAC Holdings Secures Committed $65 million Acquisition Financing for AdCare Transaction and Increases Revolving Credit Facility

AAC Holdings Secures Committed $65 million Acquisition Financing for AdCare Transaction and Increases Revolving Credit Facility

PR Newswire

BRENTWOOD, Tenn., Oct. 9, 2017 /PRNewswire/ — AAC Holdings, Inc. (NYSE: AAC) announced it has secured a $65 million acquisition financing commitment from Credit Suisse Securities (USA) LLC in conjunction with a senior secured incremental term loan facility arranged by Credit Suisse Securities (USA) LLC, Deutsche Bank Securities, BMO Capital Markets Corp. and Whitney Bank (d/b/a Hancock Bank) which was priced and allocated on September 22, 2017. Upon closing, this incremental term loan facility would be issued in connection with AAC’s existing senior secured credit facility that closed in June 2017 (having a $210 million term facility and a $40 million revolving credit facility) and proceeds from the incremental term loan facility would be used to fund AAC’s proposed acquisition of AdCare, Inc., which is anticipated to close in the first half of 2018.

AAC also announced that it increased its revolving credit facility under its existing senior secured credit facility by $15 million to $55 million. Proceeds from the increased revolving credit facility will be used for general corporate purposes.

The terms of the incremental term loan facility would be consistent with AAC’s existing $210 million senior secured term loan facility that is scheduled to mature in June 2023 and bears interest at LIBOR plus 6.75%. The increased revolving credit facility is scheduled to mature in June 2022 and bears interest at LIBOR plus 6.00%.

On September 13, 2017, AAC announced a definitive agreement to acquire AdCare, Inc., its affiliates and associated real estate assets for total consideration of $85 million. The AdCare facilities being acquired include a 114-bed hospital for substance abuse treatment and five outpatients centers in Massachusetts and a 52-bed residential treatment center and two outpatient centers in Rhode Island. The acquisition will accelerate AAC’s longstanding plan to diversify into government pay, leverage an existing outpatient and business development presence in New England and continue the expansion of its hospital strategy.

Michael Cartwright, Chairman and Chief Executive Officer of AAC Holdings, noted, “We are pleased with the solid execution and strong demand for the incremental term loan and increase in the revolver. It was important for us to secure the necessary financing well in advance of the anticipated closing in the first half of 2018. We look forward to moving ahead on our integration plans for AdCare.”

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) the ability to consummate and realize the benefits of the proposed acquisition; (ii) uncertainties regarding the timing of the closing of the acquisition; (iii) the failure or inability of either AAC or AdCare to satisfy closing conditions or obtain approvals necessary to close the transaction; (iv) unexpected costs or delays associated with efforts to obtain the regulatory or other approvals necessary to close the transaction; (v) unexpected difficulties and expenditures in connection with integration programs; (vi) risks and uncertainties in litigation or investigative proceedings, whether or not related to the transaction; (vii) the availability of financing; and (viii) incurrence of additional debt in connection with the transaction, 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.

View original content:http://www.prnewswire.com/news-releases/aac-holdings-secures-committed-65-million-acquisition-financing-for-adcare-transaction-and-increases-revolving-credit-facility-300533164.html

SOURCE AAC Holdings, Inc.

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