New 5 year $315 million credit facility
ORLANDO, Fla.–(BUSINESS WIRE)–On October 24, 2019, Rotech Healthcare Inc. (Rotech) entered into a new $315 million amended and restated credit agreement with a diversified group of lenders including SunTrust Bank as administrative agent and issuing lender and SunTrust Robinson Humphrey, Inc., Regions Bank, and Fifth Third Bank, as joint lead arrangers and bookrunners and Citizens Bank as Documentation Agent (the “Credit Agreement”). The Credit Agreement is comprised of a $250 million five year term loan, a $15 million revolving credit facility and a $50 million acquisition credit facility. The proceeds of this transaction were used to pay a $100 million special dividend to the Company’s parent as well as provide a $50 million acquisition credit facility to support the Company’s continued strategy to grow through strategic acquisitions. At close the Company will have in excess of $55 million in cash and undrawn revolver.
“I am pleased with the completed refinancing and want to thank SunTrust, Regions, Fifth Third and Citizens for leading this effort,” said Tim Pigg, Chief Executive Officer of Rotech. “This new credit agreement provides Rotech with sufficient capital over the next 5 years to continue our growth strategies as well as to provide a $100 million special dividend to our holding company.” Mr. Pigg went on to say, “2019 has been a very successful year for Rotech as we have continued to grow all our major product lines and improve profitability by controlling costs and leveraging our fixed cost infrastructure.”
Rotech is one of the largest providers of home medical equipment and related products and services (collectively referred to as “HME products and services”) in the United States, with a comprehensive offering of oxygen, and other respiratory therapy equipment and services. The Company provides HME products and services in 50 states through approximately 300 operating locations.
Thomas J. Koenig
Rotech Healthcare Inc.