AAC Holdings amends credit agreement pricing, leverage covenant

By Tali Rackner

Norfolk, Va., Feb. 28 – AAC Holdings, Inc. entered to a fourth amendment to its credit agreement with Bank of America, NA on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The amendment revises the applicable margin over Libor to add an additional pricing level. Interest is now equal to Libor plus 225 basis points to 375 bps, depending on leverage. The 375 bps level is applicable when the consolidated total leverage ratio is equal to or exceeds 4 times.

The letter-of-credit fee is also 225 bps to 375 bps and the commitment fee ranges from 35 bps to 60 bps.

As of the amendment effective date, interest is equal to Libor plus 375 bps.

In addition, the amendment extends the maximum consolidated total leverage ratio of 4:25 times through the measurement period ending Sept. 30, 2017.

AAC provides inpatient substance abuse treatment services and is based in Brentwood, Tenn.

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