AAC gets $30 million term loan, amends covenants of credit facility

By Devika Patel

Knoxville, Tenn., April 16 – AAC Holdings, Inc. closed a $30 million incremental term loan with its existing lenders in March.

In addition, the company amended its existing secured credit facility to provide increased flexibility with respect to certain financial covenants, among other changes.

“On March 8, we closed a $30 million incremental term loan with our existing lenders that provided the company with additional liquidity and we also amended our senior credit facility to provide increased flexibility related to financial covenants, most notably our senior secured leverage ratio,” chief financial officer Andrew W. McWilliams said on the company’s fourth quarter and year ended Dec. 31, 2018 earnings conference call on Tuesday.

“We also implemented a series of cost-savings initiatives in late 2018 and in the first quarter of 2019 that were fully completed within the first quarter of 2019.

“These cost savings will result in $30 million of annualized cost savings,” he said.

As of Dec. 31, 2018, AAC had $5.4 million of cash and cash equivalents and total debt of $319.2 million.

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

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