Adeptus Health adds $30 million of availability to credit facility

By Angela McDaniels

Tacoma, Wash., Nov. 1 – Adeptus Health Inc. amended its senior secured credit facility on Tuesday to add $25 million of additional availability under the term loan portion and $5 million of additional availability under the revolving credit portion, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into the facilities in October 2015. They originally provided for a $50 million revolver and a $125 million term loan.

On Aug. 12, the company added $20 million of incremental availability under the revolving credit portion of the facility.

The interest rate for the term loan is Libor plus 425 basis points, provided that the margin will increase by an additional 50 bps on the first day of each month after the effective date of the incremental term loan amendment, beginning on Jan. 1.

Up to $15 million of the incremental amount of the term loan will be available on a single date not earlier than Dec. 1 but prior to Dec. 31, and up to $10 million of the incremental amount will be available on a single date not earlier than Dec. 15 but prior to Jan. 14.

Funding of the drawings is subject to, among other conditions, the company receiving at least $27.5 million of net proceeds from an issuance of perpetual preferred stock.

The company will pay to the lenders providing the incremental term loan a ticking fee in an amount equal to 0.5% multiplied by the aggregate amount of incremental term loans that will be payable beginning on Jan. 1 and the first day of each month thereafter.

To the extent the all-in yield paid to the lenders providing the incremental term loans exceeds the all-in yield paid to the other lenders by more than 0.5%, the margin on the loans of such other lenders will increase by such excess.

Based in Lewisville, Texas, Adeptus maintains a network of freestanding emergency rooms and partnerships with health care providers.

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