Rotech obtains financing to continue growth
By HME News Staff
Updated 8:55 AM CST, Tue December 29, 2020
ORLANDO, Fla. – Rotech Healthcare has obtained $425 million in new financing via an amended and reinstated credit agreement with a diverse group of lenders.
The provider used part of the proceeds to pay a $100 million dividend to its holding company and will use the remainder to support growth through strategic acquisitions.
“This new credit agreement provides Rotech with sufficient capital over the next five years to continue our growth strategies, as well as to provide a $100 million special dividend to our holding company,” said CEO Tim Pigg. “2020 has been a very challenging and successful year for Rotech as we continue to focus on being part of the solution to the COVID-19 public health emergency.”
The credit agreement is comprised of a $335 million, five-year loan; a $15 million revolving credit facility; and a $75 million acquisition credit facility.
Over the last four years, Rotech has acquired and integrated more than 65 businesses, building its footprint to approximately 300 locations in 50 states.
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