AdaptHealth Refinances Credit Facility, Extends Maturity and Lowers Debt Costs
AdaptHealth Corp., a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services, announced today that it has closed a $1.1 billion senior secured credit facility, consisting of a $325 million Term Loan A (the “Term Loan”), a $325 million Delayed Draw Term Loan (the “Delayed Draw Facility”), and a $450 million revolving line of credit (the “Revolver”) (collectively, the “Credit Facility”).
The closing of the Credit Facility follows recent rating upgrades by both S&P Global Ratings and Moody’s Ratings, which recognized AdaptHealth’s improved financial performance, strengthened balance sheet, and enhanced operating profile. The Company believes these upgrades, along with consistent free cash flow generation, directly contributed to the improved terms achieved in the new Credit Facility — including a meaningfully reduced pricing grid that reflects lender recognition of the Company’s stronger credit standing.
Proceeds from the new $325 million Term Loan were used to fully repay, without penalty, the Company’s existing Term Loan. The new $450 million Revolver replaces the Company’s existing $300 million revolving credit facility, which had $100 million drawn at the time the Credit Facility closed. The increased Revolver size provides enhanced liquidity to support the Company’s ongoing operations.
The $325 million Delayed Draw Facility provides the Company with committed capital that may be drawn in up to two advances over a one-year availability period. Proceeds from the Delayed Draw Facility are intended to be used to redeem the Company’s 6.125% Senior Notes due 2028, once they are callable at par in August 2026, lowering the Company’s cost of debt.
The new Credit Facility delivers meaningfully improved financial terms:
- Reduced Pricing: The interest rate pricing grid has been significantly reduced from the prior credit facility, with the lowest pricing tier reduced from 1.50% to 1.125% over SOFR — a direct reflection of AdaptHealth’s improved credit profile and the confidence of its lending partners in the Company’s trajectory. The pricing grid is now indexed to the Company’s Total Leverage Ratio, rewarding continued deleveraging with further reductions in borrowing costs.
- Extended Maturity and lower weighted average cost of debt: The new Credit Facility matures in April 2031, extending the Company’s debt maturity profile by approximately two years compared to the prior facility and providing a longer runway to execute on its strategic priorities. The Company estimates its weighted average cost of debt will decrease by at least 25bps once the Company’s 6.125% Senior Notes due 2028 are redeemed.
Jason Clemens, Chief Financial Officer of AdaptHealth, said, “The terms of this new Credit Facility are a direct reflection of the significant progress we have made transforming AdaptHealth’s financial and operational profile over the past several years. The recent upgrades from both S&P and Moody’s, combined with the strong support from our banking partners — including a well-oversubscribed syndication process — validate the work our team has done to build a more resilient and higher-performing company. The improved pricing, expanded capacity, and extended maturity provide us with the financial foundation to continue delivering value to our patients, partners, and shareholders.”
The Company does not expect this transaction to affect the full year 2026 guidance provided by the Company on February 24, 2026.
About AdaptHealth Corp.
AdaptHealth is a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services. The Company operates under four reportable segments that align with its product categories: (i) Sleep Health, (ii) Respiratory Health, (iii) Diabetes Health, and (iv) Wellness at Home. The Sleep Health segment provides sleep therapy equipment, supplies and related services (including continuous positive airway pressure and BiLevel services) to individuals for the treatment of obstructive sleep apnea.
The Respiratory Health segment provides oxygen and home mechanical ventilation equipment and supplies and related chronic therapy services to individuals for the treatment of respiratory diseases, such as chronic obstructive pulmonary disease and chronic respiratory failure. The Diabetes Health segment provides medical devices, including continuous glucose monitors and insulin pumps, and related services to patients for the treatment of diabetes.
The Wellness at Home segment provides home medical equipment and services to patients in their homes including those who have been discharged from acute care and other facilities. The segment tailors a service model to patients who are adjusting to new lifestyles or navigating complex disease states by providing essential medical supplies and durable medical equipment.
The Company is proud to partner with an extensive and highly diversified network of referral sources, including acute care hospitals, sleep labs, pulmonologists, skilled nursing facilities, and clinics. AdaptHealth services beneficiaries of Medicare, Medicaid, and commercial insurance payors, reaching approximately 4.3 million patients annually in all 50 states through its network of approximately 640 locations in 48 states.
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