Rotech taps $50M for acquisitions
By HME News Staff
Updated Thu October 31, 2019
ORLANDO, Fla. - Rotech Healthcare has obtained a $315 million credit agreement to, in part, fuel strategic acquisitions.
The agreement, with lenders SunTrust Bank, SunTrust Robinson Humphrey, Regions Bank and Fifth Third Bank, includes a $250 million five-year term loan, a $15 million revolving credit facility and a $50 million acquisition credit facility.
“I am pleased with the completed refinancing,” said CEO Tim Pigg. “This agreement provides us 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. 2019 has been a very successful year for Rotech as we have continued to grow all our major product lines and improve profitability by controlling costs and leveraging our fixed cost infrastructure.”
As a result of the transaction, Rotech will also have in excess of $55 million in cash and undrawn revolver.
Rotech, which has rolled up numerous smaller HME companies over the past several years, in 2018 obtained a $185 million credit agreement with SunTrust, Regions, Fifth Third and Citizens.
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