Adeptus Health Inc. Announces Closing of $175 Million Senior Secured Credit Facilities

LEWISVILLE, Texas, Oct. 7, 2015 /PRNewswire/ -- Adeptus Health Inc. (NYSE:  ADPT), the largest operator of freestanding emergency rooms in the U.S., today announced that it has closed on  $175 million of new senior secured credit facilities. Bank of America Merrill Lynch served as administrative agent. Bank of Montreal and SunTrust Bank served as co-syndication agents. Merrill Lynch, Pierce, Fenner & Smith Incorporated, BMO Capital Markets Corp. and SunTrust Robinson Humphrey, Inc. served as joint lead arrangers and joint bookrunners. Five other banks completed the bank group providing the credit facility, including Regions Bank and Fifth Third Bank which served as co-documentation agents.

"I am pleased to announce these new credit facilities, which both lower our borrowing costs and provide us with greater flexibility as we continue to execute on our growth strategy," said Thomas S. Hall, Chairman and CEO of Adeptus Health. "Through our innovative and scalable emergency care delivery model and partnerships with leading healthcare systems, we are expanding access to the highest quality emergency medical care in more communities and states. These credit facilities help ensure that we have the resources in place to sustain our growth momentum going forward."

The new senior credit facilities include a $50 million revolving facility and a $125 million term loan facility. Both facilities have five-year terms. Subject to certain conditions, Adeptus Health also has the opportunity to increase the size of the senior credit facilities by up to an additional $50 million.  Borrowings under the new credit facilities bear interest, at the Company's option, at a rate equal to an applicable margin over (a) a base rate determined by reference to the highest of (1) the prime rate, (2) the federal funds rate plus 0.50% and (3) the Eurodollar rate plus 1.0%, or (b) the Eurodollar rate for the applicable period. The applicable margin ranges from 2.25% to 3.00% for base rate loans and from 3.25% to 4.00% for Eurodollar loans depending on the Company's leverage ratio. The initial applicable margin for Eurodollar loans will be 3.75%. 

The Company used the proceeds of the new term loan to repay its existing senior secured credit facility which was due to mature on October 31, 2018. The interest rate on the outstanding debt under this credit facility was LIBOR plus 7.5% with a LIBOR floor of 1.0%.    

About Adeptus Health Inc.
Adeptus Health Inc. (NYSE: ADPT) is a leading patient-centered healthcare organization expanding access to the highest quality emergency medical care through its network of freestanding emergency rooms and partnerships with premier healthcare providers. In Texas, Adeptus Health owns and operates First Choice Emergency Room, the nation's largest and oldest network of independent freestanding emergency rooms.  In Colorado, in partnership with University of Colorado Health, Adeptus Health operates UCHealth Emergency Rooms.  In Arizona, with Dignity Health, Adeptus Health operates Dignity Health Arizona General Hospital and freestanding emergency rooms. In Louisiana, Adeptus Health has a partnership with Ochsner Health System, the state's largest healthcare system, to improve access to emergency medical care. All Adeptus Health freestanding facilities are fully equipped emergency rooms with a complete radiology suite of diagnostic technology (CT scanner, ultrasound, and digital X-ray), on-site laboratory, and staffed with board-certified physicians and emergency trained registered nurses. According to patient feedback collected by Press Ganey Associates Inc., Adeptus Health provides the highest quality emergency medical care and received the 2013 and 2014 Press Ganey Guardian of Excellence Award for exceeding the 95th percentile in patient satisfaction nationwide. For more information please visit us on the web at adhc.com.

Investor Relations Contact:  
Susan A. Noonan 
S.A. Noonan Communications, LLC 
Tel: (212) 966-3650
Email: [email protected]  

Media Contact:  
Jackie Zupsic  
Hill+Knowlton Strategies 
Tel: (212) 885-0590 
Email: [email protected]   

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SOURCE Adeptus Health Inc.