AdaptHealth Corp. 8-K

What Happened
AdaptHealth Corp. (through subsidiary AdaptHealth LLC) announced on April 10, 2026 that it entered into a new Credit Agreement with Bank of America, N.A. as administrative agent and a syndicate of lenders. The new facility provides a $450.0 million revolving commitment (with a $75.0 million letter-of-credit sublimit), $325.0 million of initial term loans and up to $325.0 million of delayed draw term loan commitments (available up to two years). AdaptHealth used borrowings under the new facility in part to repay its prior credit agreement, which was terminated in connection with the payoff. The company furnished a related press release on April 13, 2026.

Key Details

• Date signed: April 10, 2026; 8-K filed April 13, 2026 (press release furnished as Exhibit 99.1).
• Facility structure: $450.0M revolver (L/C sublimit $75.0M), $325.0M initial term loans, up to $325.0M delayed-draw term loans (2-year window).
• Security & guarantors: Guaranteed by AdaptHealth Intermediate Holdco LLC and certain wholly owned subsidiaries; secured by substantially all assets of the loan parties.
• Maturity: Scheduled to mature/terminate on the earlier of April 13, 2031 or a springing maturity timed to certain senior note maturities (subject to exceptions).
• Financial covenants: Consolidated Total Leverage Ratio ≤ 3.50:1 (≤4.00:1 temporarily after certain acquisitions) and Consolidated Interest Coverage Ratio ≥ 3.00:1.
• Interest: Borrower’s choice of base rate or Term SOFR plus an applicable margin (base-rate margin: 0.125%–1.000%; SOFR margin: 1.125%–2.000%, based on leverage).
• Repayment: Initial term loans amortize quarterly starting at 0.625% of principal, stepping to 1.25% per quarter from the ninth fiscal quarter; delayed-draw term loans have similar amortization starting after each draw.
• Use of proceeds: Repayment of prior credit facility (already done); delayed draws may refinance the company’s 6.125% Senior Notes due 2028 (currently $325M outstanding) and fund permitted acquisitions; revolver for working capital, capex and general corporate purposes.
• Other: Customary defaults, including healthcare-law compliance events; mandatory prepayments in certain dispositions, insurance proceeds and other specified events.

Why It Matters
This agreement provides AdaptHealth with renewed liquidity and refinancing flexibility through a large revolving line and sizable term loan capacity, while replacing the prior credit facility. The financial covenants and secured nature of the loans impose limits on additional debt, asset sales, dividends/distributions and certain investments — factors that can affect capital allocation and acquisition activity. Investors should note the potential to refinance the outstanding 2028 Senior Notes via the delayed-draw feature and that interest margins will vary with leverage, which can influence future interest expense as leverage changes.