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JPMorgan Chase Agents $350MM Credit Facility for Almost Family

December 07, 2016, 07:29 AM
Filed Under: Healthcare

Almost Family, Inc. has entered into a new five-year $350 million revolving credit facility that increases its financial flexibility through 2021.  J.P. Morgan Securities LLC acted as lead book-runner and arranger, while Bank of America, N.A. acted as joint lead arranger under the Facility which replaces the Company's previous $175 million credit facility.  The Facility includes an accordion feature which permits expansion up to $500 million.

The Company also announced that it cleared the necessary regulatory approvals for the previously announced agreement to acquire a controlling interest in the entity holding the home health and hospice assets of Community Health Systems, Inc.  CHS Home Health, a provider of skilled home health and hospice services, currently operates 74 home health and 15 hospice branch locations in 22 states.  With the completion of this transaction, Almost Family will operate 340 branches across 26 states and its annual net revenue run rate is expected to exceed the $800 million mark.  The Company expects to fund the acquisition on December 30, 2016 the last day of its fiscal year.

The $350 million facility includes a syndicate of five banks including JPMorgan Chase Bank, as Administrative Agent, Bank of America, Fifth Third Bank and Regions Bank, all existing syndicate banks that expanded their commitments and the addition of Capital One Bank.  The Facility extends the maturity profile of our bank commitment to December 2021.  The Facility may be used for general corporate purposes including acquisitions and also contains an accordion feature to increase total commitments to $500 million.  Borrowings, other than letters of credit, under the Facility generally will bear interest at a rate varying from LIBOR rate plus 1.50% to LIBOR rate plus 2.75%, depending on leverage (0.25% lower than the previous facility).  The Facility is secured by substantially all of the Company’s assets and the stock of its subsidiaries.

Almost Family, Inc., founded in 1976, is a leading regional provider of home health nursing services, with branch locations in Florida, Ohio, Tennessee, New York, Connecticut, Kentucky, New Jersey, Massachusetts, Pennsylvania, Georgia, Wisconsin, Indiana, Missouri, Illinois, Mississippi and Alabama (in order of revenue significance).  Almost Family, Inc. and its subsidiaries operate a Medicare-certified segment and a personal care segment.  Excluding the CHS joint venture, Almost Family operates 250 branch locations in sixteen U.S. states.

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