AdaptHealth gets $1.35 billion debt commitment for AeroCare buy

By Sara Rosenberg

New York, Dec. 1 – AdaptHealth Corp. has received a commitment for $1.35 billion of debt financing to help fund its acquisition of AeroCare Holdings Inc., according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Jefferies LLC provided the debt commitment.

The transaction values AeroCare at about $2 billion on a debt-free, cash-free basis, with cash consideration of $1.1 billion, subject to adjustment and 31 million shares of AdaptHealth common stock.

The new debt will be used with cash on hand to fund the cash consideration of the purchase price, backstop and/or refinance the existing term loan A and pay transaction fees.

The company’s existing bond due 2028 will remain in place.

Net debt to LTM pro forma adjusted EBITDA is expected to be around 3.6x.

Closing is anticipated in the first quarter of 2021, subject to customary conditions and regulatory approvals.

AdaptHealth is a Plymouth Meeting, Pa.-based provider of home health care equipment, medical supplies to the home and related services. AeroCare is an Orlando, Fla.-based technology-enabled respiratory and home medical equipment distribution platform.

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