Aveanna Healthcare Announces Successful Debt Refinancing

Rhea-AI Summary

Aveanna Healthcare (Nasdaq: AVAH) has successfully completed a significant debt refinancing transaction. The company has refinanced its $886.0 million first lien term loans and secured $439.0 million in incremental first lien term loans, bringing the total to $1.325 billion with extended maturity to 2032.

Additionally, AVAH increased its revolving credit facility from $170.3 million to $250.0 million, extending its maturity to 2030. The company used the proceeds to fully repay its $415.0 million second lien term loans. Barclays Bank PLC and Jeffries Finance LLC acted as co-lead arrangers for the transaction.

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• Increased total first lien term loan debt to $1.325 billion from $886.0 million
• Added $439.0 million in incremental first lien term loans

Insights

Corporate Finance Specialist

Aveanna's comprehensive debt refinancing extends maturities, enhances liquidity, and strengthens its balance sheet position for future growth opportunities.

Aveanna Healthcare has executed a significant balance sheet restructuring that addresses both near-term obligations and long-term financial flexibility. The company has successfully refinanced $886 million in existing first lien term loans while securing an additional $439 million in incremental first lien borrowing. This strategic move allowed Aveanna to completely retire its $415 million second lien term loans, effectively consolidating its debt structure.

The maturity extension is particularly noteworthy - pushing first lien loan maturities to 2032 (a 7+ year extension) and revolving credit facilities to 2030. This substantially improves Aveanna's debt maturity profile, eliminating any near-term refinancing pressure. The expanded revolving credit facility, increased from $170.3 million to $250 million, provides 46.8% more liquidity cushion for operational needs and potential strategic opportunities.

What's most telling about this transaction is the willingness of capital markets to support Aveanna's refinancing at a scale of $1.325 billion in total. This signals strong lender confidence in the company's operational trajectory and business model. While the announcement doesn't disclose interest rates or specific terms, the consolidation under first lien debt typically suggests more favorable overall financing costs compared to maintaining second lien obligations. The involvement of Barclays and Jefferies as arrangers adds credibility to the transaction.

By eliminating the second lien debt entirely, Aveanna has likely simplified its capital structure and reduced its overall interest burden, though exact savings aren't quantified. This comprehensive refinancing strengthens Aveanna's financial foundation as it pursues growth in the home healthcare sector, where stable funding is crucial for both operational continuity and strategic expansion.

ATLANTA, Sept. 18, 2025 (GLOBE NEWSWIRE) -- Aveanna Healthcare Holdings Inc. (“Aveanna”) (Nasdaq: AVAH) today announced the closing of its refinanced first lien credit facility. The refinanced credit facility provides for the refinancing of the $886.0 million principal balance of existing first lien term loans, the additional borrowing of $439.0 million in incremental first lien term loans, and the upsize of its revolving credit facility from $170.3 million of maximum availability to $250.0 million of maximum availability. The combined $1.325 billion first lien term loans' maturity dates were extended to 2032, and the revolving credit facility’s maturity date was extended from 2028 to 2030.

Proceeds from the incremental first lien term loans were used to repay in full the existing second lien term loans in the amount of $415.0 million, and as a result, the second lien term loan facility was subsequently terminated.

Barclays Bank PLC and Jeffries Finance LLC served as co-lead arrangers.

“This refinancing marks another important milestone in the company's continued momentum,” said Matt Buckhalter, Chief Financial Officer. “By extending maturities and increasing our available liquidity, including our undrawn revolving facility, we have strengthened our balance sheet and enhanced our ability to execute on our strategy. This progress reflects the strong operating performance we've delivered and the confidence our financing partners have in our business."

“This successful refinancing reflects our operating performance and the proven value of our national home care platform,” said CEO, Jeff Shaner. “We are grateful to our capital partners for their unwavering support of our mission and their commitment to our continued growth and expansion.”

About Aveanna Healthcare

Aveanna Healthcare is headquartered in Atlanta, Georgia and has locations in 38 states providing a broad range of pediatric and adult healthcare services including nursing, rehabilitation services, occupational nursing in schools, therapy services, day treatment centers for medically fragile and chronically ill children and adults, home health and hospice services, as well as delivery of enteral nutrition and other products to patients. The company also provides case management services in order to assist families and patients by coordinating the provision of services between insurers or other payers, physicians, hospitals, and other healthcare providers. In addition, the company provides respite healthcare services, which are temporary care provider services provided in relief of the patient’s normal caregiver. The company’s services are designed to provide a high quality, lower cost alternative to prolonged hospitalization. For more information, please visit www.aveanna.com.

Investor Contact
Matt Buckhalter
Chief Financial Officer
ir@aveanna.com

FAQ

What is the size of Aveanna Healthcare's (AVAH) new refinanced credit facility?

Aveanna's refinanced credit facility includes $1.325 billion in first lien term loans and a $250.0 million revolving credit facility.

When do Aveanna Healthcare's (AVAH) new credit facilities mature?

The first lien term loans mature in 2032, while the revolving credit facility matures in 2030.

How much did Aveanna Healthcare (AVAH) increase its revolving credit facility?

Aveanna increased its revolving credit facility maximum availability from $170.3 million to $250.0 million, representing a $79.7 million increase.

What was the purpose of Aveanna Healthcare's (AVAH) incremental term loan borrowing?

The $439.0 million incremental first lien term loan was used to repay the existing $415.0 million second lien term loans in full.

Who were the arrangers for Aveanna Healthcare's (AVAH) debt refinancing?

Barclays Bank PLC and Jeffries Finance LLC served as co-lead arrangers for the refinancing transaction.