Deerfield Makes $50 Million Commitment to AAC Holdings to Expand Clinical Care and Treatment with Additional $50 Million Incremental Facility
NEW YORK, Oct. 5, 2015 /PRNewswire/ -- Deerfield announced today that it has made a commitment of up to $50 million to AAC Holdings, Inc. to expand its efforts to deliver research-based clinical care and treatment for individuals with drug and alcohol addictions. In addition, Deerfield has agreed to provide up to an additional $50 million under certain circumstances.
The $50 million of capital commitment consists of $25 million of subordinated convertible debt and up to $25 million of subordinated debt. AAC drew down $25 million of subordinated convertible debt at closing. The $25 million of unsecured subordinated debt can be drawn for acquisition financing through September 30, 2016 in minimum $5 million increments and can be repaid under certain conditions without penalty prior to October 2, 2017. In addition to the $25 million of subordinated convertible debt drawn at closing, there is an incremental subordinated debt facility that may be drawn, subject to certain conditions, up to an additional $50 million.
These facilities will enable AAC to further expand its presence as a leading provider of inpatient substance abuse treatment services for individuals with drug and alcohol addictions. AAC was created to facilitate research-based treatment programs with structured curricula for detoxification, residential treatment, partial hospitalization and intensive outpatient care.
"We are excited to have Deerfield work with us as our partner in expanding the business. Deerfield has proven to be creative in its approach to providing us with the capital needed to enhance our platform and add additional services to address a substance abuse epidemic that is consuming our country," said Michael Cartwright, Chairman and Chief Executive Officer of AAC.
About AAC
American Addiction Centers is a leading provider of inpatient substance abuse treatment services. We treat adults as well as adolescents who are struggling with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues. We operate 18 substance abuse treatment facilities and one mental health facility specializing in binge eating disorders. Located throughout the United States, these facilities are focused on delivering effective clinical care and treatment solutions. For more information, please find us at AmericanAddictionCenters.org or follow us on Twitter at @AAC_Tweet.
About Deerfield
Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy.
For more information, please visit www.deerfield.com.
Contacts
Deerfield Management Company
Karen Heidelberger, 212-692-7140
[email protected]
SOURCE Deerfield
Share this article