Amedisys to repurchase 50% of shares held by KKR

Amedisy (AMED) announced it has purchased 2,418,304 of its common shares from KKR (KKR), representing one-half of their holdings in the company and 7.1% of the aggregate outstanding shares of the Company’s common stock. The Company repurchased the shares at 96% of the closing price of the Company’s common stock on June 4, 2018. KKR will maintain its presence on the Amedisys Board of Directors for at least twelve months following the transaction. The aggregate value of the transaction is approximately $178M and will be financed through the use of $140M of available cash with the remainder funded by borrowings under the Company’s existing revolving credit facility. For Amedisys, this transaction will be immediately 6% to 7% accretive to earnings per common share. Post transaction, the Company’s available cash will be approximately $20M and its outstanding borrowings under the credit facility will be $128M resulting in a net leverage ratio of approximately 0.7x. The company is also in advanced discussions with its lenders to significantly expand its borrowing capacity under its senior secured credit facility to allow it to capitalize on its active acquisition pipeline. Following this transaction, Amedisys will have approximately 32M of outstanding shares of common stock.

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