Hanger Orthopedic Group has completed the acquisition of Reno, Nevada-based Accelerated Care Plus (ACP), a provider of integrated clinical programs for sub-acute and long-term care rehabilitation providers.
Hanger paid approximately $155m in cash, which was funded from cash on hand and the proceeds from the concurrent refinancing of its credit facilities.
The new facilities include $200m of 7 1/8% senior notes due 2018, a $300m Term B loan due 2016 and a $100m revolving credit facility, which matures in 2015.
The Term B loan and the revolving facilities bear interest at LIBOR plus 3.75% with a LIBOR floor of 1.5% and have provisions for step downs in interest rates upon Hanger achieving certain leverage ratios.
Hanger Orthopedic Group president and CEO Thomas Kirk said that the acquisition of ACP joins two industry providers in adjacent healthcare businesses and provides them with a platform for future growth and diversification of our revenue base.
"We are very pleased with the successful refinancing of our credit facilities. The interest from the investment and banking communities and the terms we secured are reflective of Hanger’s continued operational performance and the prospects of future growth the acquisition of ACP brings to Hanger."
Hanger Orthopedic Group is organized into four units.
The two key operating units are patient care, which consists of nationwide orthotic and prosthetic practice centers, and distribution, which consists of distribution centers managing the supply chain of orthotic and prosthetic componentry to Hanger and third party patient care centers.
The third is Linkia, which is a network management company for the orthotics and prosthetics industry.
The fourth unit, Innovative Neurotronics, introduces emerging neuromuscular technologies developed through independent research in a collaborative effort with industry suppliers worldwide.