The Pennant Group Announces Expansion of Credit Facility
Rhea-AI Summary
The Pennant Group (NASDAQ: PNTG) announced on November 5, 2025 that it added a term loan, increasing its credit facility by $100 million to an aggregate of $350 million. The incremental borrowings are supported by the company's existing lending consortium led by Truist Securities. The interest rate and maturity of the new term loan match the existing facility. Management said the amendment strengthens the balance sheet, provides added capacity to fund future growth, and that proceeds will be used to refinance a portion of outstanding revolving loans under the credit facility.
Positive
- Credit facility increased by $100 million to $350 million
- Incremental loan has same interest rate and maturity as existing debt
- Proceeds to refinance revolver, reducing outstanding revolving loans
- Facility supported by lending consortium led by Truist Securities
Negative
- Total debt increased by $100 million
- Incremental loan does not lower interest rate or shorten maturity
News Market Reaction
On the day this news was published, PNTG declined 0.44%, reflecting a mild negative market reaction. Argus tracked a trough of -3.8% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $4M from the company's valuation, bringing the market cap to $800M at that time.
Data tracked by StockTitan Argus on the day of publication.
EAGLE, Idaho, Nov. 05, 2025 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice and senior living companies, today announced that the Company has added a term loan to its credit facility, increasing the facility by
“This expansion of our credit facility further strengthens our balance sheet and gives us additional capacity to fund future growth,” said Brent Guerisoli, Pennant’s Chief Executive Officer. “We will, as always, be disciplined in our use of the credit facility. The incremental capacity afforded by this amendment, when coupled with our strong cash flow and prudent leverage ratios, gives us flexibility to be opportunistic and strategic in the future.”
“We appreciate the ongoing partnership of our banking partners and their enthusiasm to support our continuing growth,” added Lynette Walbom, Pennant’s Chief Financial Officer. Ms. Walbom confirmed that the proceeds from the incremental term loan would be used to refinance a portion of the outstanding revolving loans under the credit facility.
About Pennant:
The Pennant Group, Inc. is a holding company of independent operating subsidiaries that provide healthcare services through 141 home health and hospice agencies and 61 senior living communities located throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. Each of these businesses is operated by a separate, independent operating subsidiary that has its own management, employees and assets. References herein to the consolidated "company" and "its" assets and activities, as well as the use of the terms "we," "us," "its" and similar verbiage, are not meant to imply that The Pennant Group, Inc. has direct operating assets, employees or revenue, or that any of the home health and hospice businesses, senior living communities or the Service Center are operated by the same entity. More information about Pennant is available at www.pennantgroup.com.
Contact Information
The Pennant Group, Inc.
(208) 506-6100
ir@pennantgroup.com
SOURCE: The Pennant Group, Inc.
FAQ
What did Pennant Group (PNTG) announce on November 5, 2025 about its credit facility?
How will Pennant Group (PNTG) use the proceeds from the November 2025 term loan?
Who is supporting Pennant Group's (PNTG) expanded credit facility?
Did the incremental loan change the interest rate or maturity for PNTG?
What immediate financial effect does the November 5, 2025 amendment have for PNTG shareholders?
