The Ensign Group Announces New $600 Million Credit Facility

Rhea-AI Summary

The Ensign Group (Nasdaq: ENSG) announced an increase in its credit facility by $250 million, bringing the total to $600 million. This funding, arranged by Truist Securities, matures on April 8, 2027, and includes a $400 million incremental expansion option. CEO Barry Port stated that the borrowings will help enhance their capital structure and support acquisitions, renovations, and working capital needs. Ensign operates 252 healthcare facilities across various states, providing skilled nursing and senior living services.

Positive

• Increased credit facility by $250 million to $600 million enhances financial flexibility.
• New facility supports acquisitions, renovations, and working capital needs.

Negative

• None.

SAN JUAN CAPISTRANO, Calif., April 12, 2022 (GLOBE NEWSWIRE) -- The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign™ group of companies, which invest in and provide skilled nursing and senior living services, physical, occupational and speech therapies, other rehabilitative and healthcare services, and real estate, announced today that Ensign and its subsidiaries increased their credit facility by $250 million to an aggregate of $600 million. The borrowings are supported by a lending consortium arranged by Truist Securities. The new facility matures on April 8, 2027 and includes a $400 million incremental expansion option, among other things.

"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. We have always been very prudent in protecting our balance sheet and this new facility provides us with excellent flexibility in an ever-changing healthcare environment," said Barry Port, Ensign's Chief Executive Officer. "We appreciate the continued support of our banking partners and we look forward to working with them further as we continue our strategy of disciplined growth," he added.

Mr. Port confirmed that in addition to refinancing some existing borrowings, the proceeds of the credit facility will be used to fund acquisitions, renovate and upgrade existing and future facilities, cover working capital needs and for other business purposes.

About Ensign™

The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 252 healthcare facilities, in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. More information about Ensign is available at http://www.ensigngroup.net.

Contact Information

The Ensign Group, Inc., (949) 487-9500, ir@ensigngroup.net

SOURCE: The Ensign Group, Inc.

FAQ

What recent financial move did Ensign Group (ENSG) make?

Ensign Group increased its credit facility by $250 million to a total of $600 million.

When does the new credit facility for ENSG mature?

The new credit facility matures on April 8, 2027.

How will Ensign Group utilize the new credit facility?

The funds will be used for acquisitions, renovations, and covering working capital needs.

Who arranged the new credit facility for Ensign Group?

The credit facility was arranged by Truist Securities.

What services does Ensign Group provide?

Ensign Group provides skilled nursing, senior living services, and therapy services at 252 facilities.