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AdaptHealth Announces Pricing of $500 Million 4.625% Senior Notes Due 2029
PLYMOUTH MEETING, Pa.--(BUSINESS WIRE)-- AdaptHealth Corp. (NASDAQ: AHCO) (“AdaptHealth” or the “Company”), a leading provider of home healthcare equipment,
About this update from Adapthealth Corp.
[{"type":"text","content":" PLYMOUTH MEETING, Pa.--(BUSINESS WIRE)--\nAdaptHealth Corp. (NASDAQ: AHCO) (“AdaptHealth” or the “Company”), a leading provider of home healthcare equipment, medical supplies to the home and related services in the United States, announced today that its subsidiary, AdaptHealth LLC (the “Issuer”), has priced an offering of $500 million aggregate principal amount of 4.625% senior notes due 2029 (the “senior notes”). The senior notes will be issued at a price of 100.00% of their principal amount.\n\nThe gross proceeds from the offering will be deposited into a segregated escrow account pending completion of the Company’s previously announced acquisition of AeroCare Holdings, Inc. (“AeroCare”). At the closing of the AeroCare acquisition, the net proceeds from the offering will be released from escrow and, together with term loan borrowings and cash on hand, will be used to finance the cash portion of the consideration for the AeroCare acquisition and to pay related fees and expenses. The gross proceeds from the offering will replace the outstanding bridge commitment the Issuer has in place with Jefferies Finance LLC in connection with funding the AeroCare acquisition.\n\nThe AeroCare acquisition is expected to close in the first quarter of 2021, subject to customary closing conditions. If the AeroCare acquisition is not completed by May 31, 2021 (or such earlier date on which the Issuer determines that the escrow release conditions cannot be satisfied), the Issuer will be required to redeem the senior notes at a redemption price equal to 100% of the principal amount of the senior notes, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.\n\nThe senior notes will be guaranteed by certain of the Issuer’s current and future subsidiaries (including AeroCare and its subsidiaries after the consummation of the AeroCare acquisition), as well as the Issuer’s direct parent, AdaptHealth Intermediate Holdco LLC, on a senior unsecured basis. The offering is expected to be completed on January 4, 2021, subject to the satisfaction of customary closing conditions.\n\nThe senior notes and related guarantees are being offered only to investors who are reasonably believed to be “qualified institutional buyers” in reliance on the exemption from registration set forth in Rule 144A under the Securities Act of 1933, as amen...