FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


SunTrust Bank Agents $290MM Syndicated Credit Facility for Apollo Medical Holdings

September 13, 2019, 08:45 AM
Filed Under: Medical

Apollo Medical Holdings, Inc. (AMEH), an integrated population health management company, announced that it has closed a new credit facility. The new aggregate $290 million credit facility consists of a $190 million senior secured term loan and a $100 million revolving credit facility, among other facilities, that will mature in 2024. The initial pricing of the term loan is LIBOR plus 2.50%.

SunTrust Robinson Humphrey, Inc served as left lead arranger and SunTrust Bank is acting as administrative agent for the facility. Additionally, Preferred Bank, J.P. Morgan Chase, MUFG Union Bank, N.A., and Royal Bank of Canada served as joint lead arrangers and joint bookrunners for the syndicate. ApolloMed has also completed the series of transactions with two of its affiliates, AP-AMH Medical Corporation, a California professional medical corporation ("AP-AMH"), and Allied Physicians of California, a Professional Medical Corporation, a California professional medical corporation d.b.a. Allied Pacific of California IPA ("APC").

"We are extremely excited to announce this new credit facility which enables us to complete our previously announced transaction with APC and provides an initial $40 million of availability on our revolving credit facility as the potential dry powder to pursue future acquisitions of additional independent practice associations ('IPAs') by leveraging our strong balance sheet to create additional shareholder value," said Kenneth Sim, M.D., Executive Chairman of ApolloMed.

"The closing of the APC transaction will immediately improve ApolloMed's bottom line net income in 2019 and, we expect, in future years. Aggregated with our recent synergistic acquisitions of Accountable Health Care IPA and Alpha Care Medical Group, both immediately increasing our revenue in 2019 and, we expect in future years, our team is laser focused on both significant near-term and long-term growth opportunities. We believe the combination of these recent transactions solidifies our position as a best-in-class, patient-centered and physician-centric, value-based, integrated healthcare delivery system and management company. The overwhelming support of the debt capital markets evidenced by the participation of the top-tier lenders in our credit facility is a testament to the growing financial stability of our distinctive physician driven business model that is leading the healthcare industry in value-based care, by reducing the cost of healthcare while producing high quality outcomes."

Initial funding from the new loan facility allows the Company to refinance its current outstanding debt and allows the Company to complete the series of agreements with two of its affiliates, AP-AMH, and APC. 

Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.