AHCO · AdaptHealth Corp.

AdaptHealth Corp. has executed a significant debt refinancing through a new $1.1 billion senior secured credit facility, which replaces its prior credit agreement. The transaction is structured to improve the company's financial flexibility and cost profile. The new facility consists of three components: a $450 million revolving line of credit, a $325 million term loan (Term Loan A), and a $325 million delayed draw term loan commitment available for up to two years. The immediate use of the term loan proceeds was to fully repay the company's existing term loan under its prior credit agreement, which was terminated on April 10, 2026. The delayed draw facility provides committed capital intended primarily for the future redemption of the company's 6.125% Senior Notes due 2028, once they become callable at par in August 2026. This strategic move is aimed at lowering the company's overall cost of debt, with management estimating a reduction in the weighted average cost of debt by at least 25 basis points following the note redemption. The new credit agreement extends the maturity profile to April 2031, approximately two years longer than the prior facility, providing a longer runway for executing strategic priorities. Key financial improvements include a reduced interest rate pricing grid, with the lowest tier for SOFR-based loans now at 1.125% over SOFR, down from 1.50% in the prior facility. This pricing is dynamically linked to the company's Consolidated Total Leverage Ratio, incentivizing further deleveraging. The agreement imposes standard financial maintenance covenants, including a leverage ratio cap of 3.50:1.00 and an interest coverage ratio floor of 3.00:1.00, with temporary relief following material acquisitions. The company attributes the favorable terms to its improved financial performance, strengthened balance sheet, consistent free cash flow generation, and recent credit rating upgrades from S&P Global Ratings and Moody's Ratings. The increased revolving commitment from $300 million to $450 million, with only $100 million drawn at closing, enhances liquidity for ongoing operations and strategic initiatives. Management, including CFO Jason Clemens, views the transaction as validation of the company's operational and financial transformation, providing a foundation for continued value creation.