AdaptHealth Closes $1.1B Credit Facility
AdaptHealth announced that it has closed a $1.1B senior secured credit facility, consisting of a $325M Term Loan A, a $325M Delayed Draw Term Loan, and a $450M revolving line of credit. The closing of the Credit Facility follows recent rating upgrades by both S&P Global Ratings and Moody's Ratings, which recognized AdaptHealth's improved financial performance, strengthened balance sheet, and enhanced operating profile. The Company believes these upgrades, along with consistent free cash flow generation, directly contributed to the improved terms achieved in the new Credit Facility - including a meaningfully reduced pricing grid that reflects lender recognition of the Company's stronger credit standing. Proceeds from the new $325M Term Loan were used to fully repay, without penalty, the Company's existing Term Loan. The new $450M Revolver replaces the Company's existing $300M revolving credit facility, which had $100M drawn at the time the Credit Facility closed. The increased Revolver size provides enhanced liquidity to support the Company's ongoing operations. The $325M Delayed Draw Facility provides the Company with committed capital that may be drawn in up to two advances over a one-year availability period. Proceeds from the Delayed Draw Facility are intended to be used to redeem the Company's 6.125% Senior Notes due 2028, once they are callable at par in August 2026, lowering the Company's cost of debt.
