Rotech signs $185M credit agreement

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Thursday, April 12, 2018

ORLANDO, Fla. – Rotech Healthcare has obtained a $185 million credit facility to “continue (its) growth strategies.”

The five-year agreement with SunTrust Bank, SunTrust Robinson Humphrey, Inc., Regions Bank and Fifth Third Bank comprises a $160 million loan and a $25 million revolving line of credit, according to a press release.

“I am pleased with the completed refinancing and want to thank SunTrust, Regions and Fifth Third for leading this effort,” said Tim Pigg, CEO of Rotech. “These new credit agreements provide Rotech with sufficient capital over the next five years to continue our growth strategies.”

Rotech has acquired numerous smaller DME companies over the years and expects to acquire more as the fallout from Medicare’s competitive bidding program continues. In 2017, those acquisitions helped the company grow its three major product lines by 18% to 32%, according to the release.

Simultaneously, Rotech is also working with industry groups and CMS on efforts to stabilize DME pricing and reverse access to care issues, Pigg says.

“We remain hopeful that some of these actions will be implemented later this year,” he said.