Hanger Orthopedic Group Inc. announced completion of the acquisition of Reno, Nevada-based Accelerated Care Plus (ACP). Hanger paid approximately $155 million in cash, which was funded from cash on hand and the proceeds from the concurrent refinancing of its credit facilities. The new facilities include $200 million of 7 1/8% senior notes due 2018, a $300 million Term B loan due 2016 and a $100 million 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.
“The acquisition of ACP joins two industry leaders in adjacent health care businesses and provides us with a platform for future growth and diversification of our revenue base. It is consistent with our vision to be the provider of choice for services and products that enhance human physical capability,” Thomas F. Kirk, president and chief executive officer of Hanger Orthopedic Group, stated in a press release. “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.”