The Ensign Group and its subsidiaries increased their credit facility by $250 million to a total of $600 million, the San Juan Capistrano, Calif.-based company announcement Tuesday.
Proceeds, in addition to refinancing certain existing debt, will be used to fund acquisitions, refurbish and upgrade existing and future facilities, cover working capital requirements and for other business purposes, said Barry Port, CEO of ‘Ensign.
“These new borrowings further strengthen our long-term capital structure and, coupled with our strong operating performance, provide plenty of dry powder for growth on both the operations and real estate fronts,” Port said.
The borrowings are backed by a lending syndicate organized by Truist Securities. The new credit facility will mature in 2027 and includes an additional $400 million expansion option, among others, according to the Ensign Group.
The new credit facility provides Ensign Group with “excellent flexibility in an ever-changing healthcare environment,” Port.On said.
During the February earnings call, Ensign’s chief financial officer, Suzanne Snapper, said the company’s liquidity remained strong, with approximately $262.2 million in cash on hand and $343.3 million in capacity available under its line of credit at that time.