AdaptHealth Corp. closed a $1.1 billion senior secured credit facility on April 13, 2026. The facility consists of a $325 million Term Loan A, a $325 million Delayed Draw Facility, and a $450 million revolving line of credit. It replaces the company’s prior $300 million revolver, which had $100 million drawn at closing, giving AdaptHealth a larger, more flexible liquidity source for ongoing operations.
Proceeds from the $325 million Term Loan A were used to fully repay the company’s existing Term Loan without penalty, while the $325 million Delayed Draw Facility will be available for up to two advances over a one‑year period. The company intends to use the delayed draw to redeem its 6.125 % senior notes due 2028 once they become callable at par in August 2026, thereby reducing the cost of debt.
The new facility extends the maturity profile to April 2031, adding roughly two years to the company’s debt horizon. The interest rate grid has been lowered from 1.50 % to 1.125 % over SOFR, and pricing is indexed to the company’s total leverage ratio. Management estimates the weighted average cost of debt will fall by at least 25 basis points once the 2028 notes are redeemed. The refinancing follows recent rating upgrades by S&P Global Ratings and Moody’s, and the syndication process was well‑oversubscribed.
The refinancing comes after a period of strong performance in AdaptHealth’s Sleep Health and Respiratory Health segments, which grew in 2025, while Diabetes Health and Wellness at Home faced headwinds from a shift in payer mix and asset dispositions. The company’s large capitated contract, the largest in the home medical equipment industry, will require infrastructure investments that the new liquidity will support. The improved credit profile also positions AdaptHealth to pursue additional growth opportunities.
CFO Jason Clemens said, "The terms of this new Credit Facility are a direct reflection of the significant progress we have made transforming AdaptHealth's financial and operational profile over the past several years." He added, "The recent upgrades from both S&P and Moody's, combined with the strong support from our banking partners – including a well‑oversubscribed syndication process – validate the work our team has done to build a more resilient and higher‑performing company. The improved pricing, expanded capacity, and extended maturity provide us with the financial foundation to continue delivering value to our patients, partners, and shareholders."
The company indicated that the new facility will not affect its 2026 guidance, which remains unchanged. The refinancing strengthens AdaptHealth’s balance sheet, extends debt maturity, and reduces borrowing costs, providing a solid foundation for continued operational execution and strategic initiatives.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.