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Subsequent Events
3 Months Ended
Mar. 31, 2017
Subsequent Events [Abstract]  
Subsequent Event

12. Subsequent Events

     On April 24, 2017, the Company entered into a definitive securities purchase agreement to acquire Options Services, Inc. d/b/a Options Home Care ("Options Home Care"), a wholly-owned subsidiary of HB Management Group, Inc., for approximately $23.2 million. Options Home Care is a provider of personal care services in more than 20 counties in New Mexico and the acquisition will expand the footprint of the Company's existing operations in the state. The Company is expected to close on the acquisition in the third quarter, pending customary closing conditions.

     On May 8, 2017, the Company entered into a new credit facility and credit agreement (the "Credit Agreement") with certain lenders and Capital One, National Association, as a lender and swing lender and as agent for all lenders. This credit facility totals $250.0 million, replaces our previous senior secured credit facility totaling $125.0 million, and terminates our Second Amended and Restated Credit and Guaranty Agreement, dated as of August 11, 2014 with certain lenders and Fifth Third Bank as agent. The new credit facility includes a $125.0 million revolving loan, a $45.0 million term loan and an $80.0 million delayed draw term loan. The maturity of the new credit facility is five years, although the delayed draw term loan is only available until November 8, 2018. Under the terms of an accordion feature of the Credit Agreement, $100.0 million is also available for incremental term loans. Fundings under the delayed draw term loans and the incremental term loans are limited to financing or refinancing Permitted Acquisitions (as defined in the Credit Agreement).

     Addus HealthCare is the borrower, with the Company and substantially all of the subsidiaries of the Company as guarantors under the credit facility. The credit facility is secured by a first priority security interest in all of the Company's and the other credit parties' current and future tangible and intangible assets, including the shares of stock of the borrower and subsidiaries.

     The availability of additional draws under the revolving credit portion of the Company's credit facility is conditioned, among other things, upon (after giving effect to such draws), the ratio of Consolidated Total Indebtedness (as defined in the Credit Agreement), less subordinated indebtedness, to Consolidated Adjusted EBITDA (as defined in the Credit Agreement) not exceeding 4.25:1.00.

     Interest on the Company's credit facility may be payable at (x) the sum of (i) an applicable margin ranging from 1.50% to 2.25% based on the applicable senior leverage ratio (provided that the applicable margin will be 1.50% through approximately October 31, 2017) plus (ii) a base rate equal to the greatest of (a) the rate of interest last quoted by The Wall Street Journal as the "prime rate," (b) the sum of the federal funds rate plus a margin of 0.50% and (c) the sum of the adjusted LIBOR that would be applicable to a loan with an interest period of one month advanced on the applicable day (not to be less than 0.00%) plus a margin of 1.00% or (y) the sum of (i) an applicable margin ranging from 2.50% to 3.25% based on the applicable leverage ratio (provided that the applicable margin will be 2.50% through approximately October 31, 2017) plus (ii) the offered rate per annum for the applicable interest period that appears on Reuters Screen LIBOR01 Page. Swing loans may not be LIBOR loans.

     We pay a fee ranging from 0.25% to 0.50% based on the applicable leverage ratio times the unused portion of the revolving portion of the credit facility. (provided that the fee will be 0.25% through approximately October 31, 2017).

     The Credit Agreement contains customary affirmative covenants regarding, among other things, the maintenance of records, compliance with laws, maintenance of permits, maintenance of insurance and property and payment of taxes.

     The Credit Agreement also contains certain customary financial covenants and negative covenants that, among other things, include a requirement to maintain a minimum fixed charge coverage ratio, a requirement to stay below a maximum senior leverage ratio and a requirement to stay below a maximum permitted amount of capital expenditures, as well as restrictions on guarantees, indebtedness, liens, investments and loans, subject to customary carve outs, a restriction on dividends (provided that Addus Healthcare may make distributions to the Company in an amount that does not exceed $5.0 million in any year absent of an event of default, plus limited exceptions for tax and administrative distributions), a restriction on the ability to consummate acquisitions in amounts exceeding $60.0 million individually and $80.0 million in the aggregate each year (in each case, without the consent of the lenders), restrictions on mergers, dispositions of assets, and affiliate transactions, and restrictions on fundamental changes and lines of business.

     The Credit Agreement is attached hereto as Exhibit 10.3 and is incorporated herein by reference. The foregoing summary of the Credit Agreement does not purport to be a complete statement of the parties' rights and obligations under the Credit Agreement, and is qualified in its entirety by reference to Exhibit 10.3.