The Pennant Group Announces New $250 Million Credit Facility
Rhea-AI Summary
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.
Positive
- 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
Negative
- None.
News Market Reaction
On the day this news was published, PNTG declined 2.17%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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.
FAQ
What is the new credit facility amount for The Pennant Group (PNTG)?
When does The Pennant Group's (PNTG) new credit facility expire?
How does The Pennant Group (PNTG) plan to use the proceeds from the new credit facility?
Who arranged The Pennant Group's (PNTG) new credit facility?
