Deerfield Investment Management announced it has committed up to $50 million to American Addiction Centers’ (AAC) parent company, as well as an additional $50 million available under certain circumstances. Deerfield is AAC’s largest institutional shareholder with a 6.4 percent stake.
With the two new financing facilities, AAC can draw acquisition financing in minimum $5 million increments, according to Deerfield.
“In the last twelve months, our bed capacity has grown from 487 beds at the time of our [initial public offering] to 773 beds currently and over 400 additional beds in our pipeline,” said Michael Cartwright, CEO of AAC, in a statement “The additional capital from Deerfield and its continued support as our largest institutional shareholder enable us to finish the de novo projects underway and remain active in securing new growth opportunities through acquisitions.”
AAC stock prices reached $28.68 in mid-day trading, recovering from a dramatic downturn in early August.