The Ensign Group and its subsidiaries increased their credit facility by $250 million to an aggregate of $600 million, the San Juan Capistrano, CA-based company announced Tuesday.
Proceeds, in addition to refinancing some existing borrowings, will be used to fund acquisitions, renovate and upgrade existing and future facilities, cover working capital needs and for other business purposes, Ensign CEO Barry Port said.
“These new borrowings further strengthen our long-term capital structure and, together with our strong operating performance, provide lots of dry powder for growth both on the operations and the real estate front, Port said.
The borrowings are supported by a lending consortium arranged by Truist Securities. The new credit facility will mature in 2027 and includes a $400 million incremental expansion option, among other things, according to the Ensign Group.
The new credit facility provides the Ensign Group with “excellent flexibility in an ever-changing healthcare environment,” Port said.On
February’s earnings call, Ensign Chief Financial Officer Suzanne Snapper commented that the company’s liquity remained strong, with approximately $262.2 million of cash on hand and $343.3 million of available capacity under its line-of-credit facility at that time.
