The Pennant Group Announces New $250 Million Credit Facility
The Pennant Group (NASDAQ: PNTG) has announced a significant expansion of its credit facility, increasing it by $100 million to reach a total of $250 million. This new facility, arranged by Truist Securities and supported by a lending consortium, will expire on July 31, 2029. The company plans to use the proceeds to refinance existing borrowings, fund acquisitions, cover working capital needs, and support other business purposes.
CEO Brent Guerisoli emphasized that this amended facility strengthens Pennant's balance sheet and, combined with strong operating cash flow, provides substantial resources for future growth. CFO Lynette Walbom expressed appreciation for the continued support of their banking partners and the confidence shown by new lenders joining the consortium.
The Pennant Group (NASDAQ: PNTG) ha annunciato un'espansione significativa della propria linea di credito, aumentandola di 100 milioni di dollari per raggiungere un totale di 250 milioni di dollari. Questa nuova linea, organizzata da Truist Securities e supportata da un consorzio di prestatori, scadrà il 31 luglio 2029. L'azienda prevede di utilizzare i proventi per rifinanziare i prestiti esistenti, finanziare acquisizioni, coprire le esigenze di capitale circolante e sostenere altri scopi aziendali.
Il CEO Brent Guerisoli ha sottolineato che questa linea di credito modificata rafforza il bilancio di Pennant e, combinata con un forte flusso di cassa operativo, fornisce risorse sostanziali per la crescita futura. La CFO Lynette Walbom ha espresso gratitudine per il continuo supporto dei loro partner bancari e la fiducia mostrata dai nuovi prestatori che si sono uniti al consorzio.
The Pennant Group (NASDAQ: PNTG) ha anunciado una expansión significativa de su línea de crédito, aumentándola en 100 millones de dólares para alcanzar un total de 250 millones de dólares. Esta nueva línea, organizada por Truist Securities y respaldada por un consorcio de prestamistas, caducará el 31 de julio de 2029. La empresa planea utilizar los ingresos para refinanciar préstamos existentes, financiar adquisiciones, cubrir necesidades de capital de trabajo y apoyar otros fines empresariales.
El CEO Brent Guerisoli enfatizó que esta línea de crédito revisada fortalece el balance de Pennant y, junto con un sólido flujo de efectivo operativo, proporciona recursos sustanciales para el crecimiento futuro. La CFO Lynette Walbom expresó su agradecimiento por el continuo apoyo de sus socios bancarios y la confianza mostrada por los nuevos prestamistas que se unieron al consorcio.
The Pennant Group (NASDAQ: PNTG)가 신용 시설의 중요한 확장을 발표하며, 총 2억 5천만 달러에 도달하기 위해 1억 달러를 증액했습니다. Truist Securities가 주선하고 대출 컨소시엄의 지원을 받는 이 새로운 시설은 2029년 7월 31일에 만료됩니다. 회사는 수익금을 사용하여 기존 대출 재융자, 인수 자금 조달, 운영 자본 필요 충당, 기타 사업 목적 지원에 사용할 계획입니다.
CEO Brent Guerisoli는 이 수정된 시설이 Pennant의 재무 구조를 강화하고, 강력한 운영 현금 흐름과 결합하여 미래 성장에 대한 상당한 자원을 제공한다고 강조했습니다. CFO Lynette Walbom은 그들의 은행 파트너들의 지속적인 지원과 새로 합류한 대출자들의 신뢰에 대해 감사를 표했습니다.
The Pennant Group (NASDAQ: PNTG) a annoncé une expansion significative de sa ligne de crédit, augmentant celle-ci de 100 millions de dollars pour atteindre un total de 250 millions de dollars. Cette nouvelle ligne, organisée par Truist Securities et soutenue par un consortium de prêteurs, expirera le 31 juillet 2029. L'entreprise prévoit d'utiliser les fonds pour refinancer les emprunts existants, financer des acquisitions, couvrir les besoins en fonds de roulement et soutenir d'autres objectifs commerciaux.
Le PDG Brent Guerisoli a souligné que cette ligne de crédit modifiée renforce le bilan de Pennant et, combinée à un fort flux de trésorerie d'exploitation, fournit des ressources substantielle pour la croissance future. La CFO Lynette Walbom a exprimé sa gratitude pour le soutien continu de leurs partenaires bancaires et la confiance témoignée par les nouveaux prêteurs rejoignant le consortium.
The Pennant Group (NASDAQ: PNTG) hat eine bedeutende Erweiterung seiner Kreditfazilität angekündigt und diese um 100 Millionen Dollar auf insgesamt 250 Millionen Dollar erhöht. Diese neue Fazilität, die von Truist Securities arrangiert und von einem Konsortium von Kreditgebern unterstützt wird, läuft am 31. Juli 2029 aus. Das Unternehmen plant, die Erlöse zur Refinanzierung bestehender Kreditaufnahmen, zur Finanzierung von Akquisitionen, zur Deckung des Arbeitskapitalbedarfs und zur Unterstützung anderer geschäftlicher Zwecke zu verwenden.
CEO Brent Guerisoli betonte, dass diese angepasste Fazilität die Bilanz von Pennant stärkt und in Kombination mit einem starken operativen Cashflow erhebliche Ressourcen für zukünftiges Wachstum bereitstellt. CFO Lynette Walbom drückte ihre Wertschätzung für die fortwährende Unterstützung ihrer Bankpartner aus und zeigte sich dankbar für das Vertrauen neuer Kreditgeber, die dem Konsortium beigetreten sind.
- Increased credit facility by $100 million to $250 million total
- Extended credit facility expiration to July 31, 2029
- Strengthened balance sheet and increased financial flexibility
- Additional funds available for acquisitions and growth
- None.
The Pennant Group's new
Key points to consider:
- Enhanced liquidity: The increased credit line bolsters Pennant's financial position, providing a larger cash cushion for operations and strategic initiatives.
- Extended maturity: The facility's expiration in 2029 offers long-term stability and reduces refinancing risk in the near term.
- Growth opportunities: With this "dry powder," Pennant is well-positioned to pursue acquisitions in the fragmented home health, hospice and senior living sectors.
- Improved terms: The mention of enhanced covenants and terms suggests more favorable conditions, potentially lowering borrowing costs and providing greater operational flexibility.
While the increased facility is promising, investors should monitor Pennant's ability to effectively deploy this capital and generate returns that exceed the cost of debt. The company's emphasis on disciplined and prudent use of funds is reassuring, but execution will be key to realizing the potential benefits of this expanded credit line.
The Pennant Group's expanded credit facility signals potential for significant growth in the home health, hospice and senior living sectors. This move is particularly noteworthy given the current healthcare landscape:
- Aging population: With the growing elderly demographic, demand for home health and hospice services is expected to rise, making Pennant's expansion strategy timely.
- Shift to home-based care: The COVID-19 pandemic has accelerated the trend towards home-based healthcare, aligning with Pennant's service offerings.
- Consolidation opportunities: The fragmented nature of these healthcare subsectors presents numerous acquisition targets for well-capitalized players like Pennant.
However, investors should be aware of potential challenges:
- Regulatory environment: Healthcare services are heavily regulated and changes in reimbursement policies could impact profitability.
- Labor market: The healthcare industry faces ongoing staffing shortages, which could affect growth and operational efficiency.
- Integration risks: As Pennant pursues acquisitions, successful integration of new entities will be important for realizing synergies and maintaining quality of care.
Overall, this increased credit facility positions Pennant to capitalize on favorable industry trends, but careful execution and navigation of sector-specific challenges will be essential for long-term success.
EAGLE, Idaho, Aug. 01, 2024 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice and senior living companies, today announced that the Company has increased its credit facility by
“This amended facility further strengthens our balance sheet, and together with our strong operating cash flow, creates significant dry powder for future growth,” said Brent Guerisoli, Pennant’s Chief Executive Officer. “As always, we will be disciplined and prudent in our use of these funds, and we will benefit from the added flexibility this facility provides, both in terms of its size, and also its covenants and other terms.”
“We appreciate the continued support of our banking partners and the confidence extended by the new lenders joining the consortium,” added Lynette Walbom, Pennant’s Chief Financial Officer.” Ms. Walbom confirmed that in addition to refinancing existing borrowings, the proceeds of the credit facility would be used to fund acquisitions, cover working capital needs, and for other business purposes.
About Pennant:
The Pennant Group, Inc. is a holding company of independent operating subsidiaries that provide healthcare services through 117 home health and hospice agencies and 54 senior living communities located throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. Each of these businesses is operated by a separate, independent operating subsidiary that has its own management, employees and assets. References herein to the consolidated "company" and "its" assets and activities, as well as the use of the terms "we," "us," "its" and similar verbiage, are not meant to imply that The Pennant Group, Inc. has direct operating assets, employees or revenue, or that any of the home health and hospice businesses, senior living communities or the Service Center are operated by the same entity. More information about Pennant is available at www.pennantgroup.com.
Contact Information
The Pennant Group, Inc.
(208) 506-6100
ir@pennantgroup.com
SOURCE: The Pennant Group, Inc.
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