AdaptHealth closes $1.1 billion credit facility refinancing

AdaptHealth Corp. (NASDAQ: AHCO) closed a $1.1 billion senior secured credit facility, the company announced. The facility consists of a $325 million Term Loan A, a $325 million Delayed Draw Term Loan, and a $450 million revolving line of credit.

The refinancing follows recent credit rating upgrades from S&P Global Ratings and Moody's Ratings. Proceeds from the new Term Loan were used to fully repay the company's existing Term Loan. The new revolving facility replaces a $300 million credit line that had $100 million drawn at closing.

The Delayed Draw Facility provides committed capital that may be accessed in up to two advances over a one-year period. AdaptHealth plans to use proceeds to redeem its 6.125% Senior Notes due 2028 when they become callable at par in August 2026.

The new facility reduces the interest rate pricing grid, with the lowest pricing tier decreasing from 1.50% to 1.125% over SOFR. The credit facility matures in April 2031, extending the debt maturity profile by approximately two years. The company estimates its weighted average cost of debt will decrease by at least 25 basis points after redeeming the 2028 notes.

"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," said Jason Clemens, Chief Financial Officer.

AdaptHealth operates in home medical equipment and healthcare services across four segments: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home. The company serves approximately 4.3 million patients annually through about 640 locations in 48 states.

The company stated the transaction will not affect its full year 2026 guidance provided on February 24, 2026.

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