AAC Holdings gets $30 million term loan, amends existing facility

By Sarah Lizee

Olympia, Wash., March 13 – AAC Holdings, Inc. obtained a $30 million term loan due March 31, 2020 with Credit Suisse AG as administrative agent on Friday, according to an 8-K filing with the Securities and Exchange Commission.

Interest is Libor plus 1,100 basis points. There is a 1% Libor floor.

If the facility is repaid or accelerated after an event of default, the company must make an exit payment equal to 1% of the then outstanding principal amount of the facility if the event occurs within the next nine months. The exit payment will be increased by an additional 1% at the end of each 30-day period after that.

Financial covenants include a maximum senior secured leverage ratio, which is initially set at 7.75 to 1.00 as of the last day of the fiscal quarter ending June 30, with step downs over the term of the facility.

In connection with entering into the new facility, the company amended its 2017 credit facility with Credit Suisse as administrative agent.

The amendment increased the interest rate on the term loans outstanding under the 2017 credit facility by, at the company’s option, either 200 bps, to be reduced to 100 bps if the senior secured leverage ratio condition is satisfied, or 400 bps, payable in kind.

In addition, the amendment increased the commitment fee for the undrawn portion of the revolving credit facility to 100 bps from 50 bps.

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

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