This story first ran in our sister paper the Nashville Post.
Leaders of AAC Holdings say they are going over the details of “numerous” proposals from investment firms brought to the table by investment bank Cantor Fitzgerald.
Brentwood-based American Addiction Centers engaged Cantor about two months ago to examine refinancing or recapitalization options, including selling off some of its real estate and other assets.
That came several months after a big drop in the company’s business that executives attributed to a change in Google’s search algorithms that hurt sales leads.
“We are excited by the investment interest in our company and are engaged in talks with numerous well-regarded financing sources,” Chairman and CEO Michael Cartwright said in a statement that didn’t elaborate on the offers but did offer up a few early details about the company’s second-quarter performance.
More details are coming soon — AAC will file its quarterly report late in part because of the Cantor process, but also because Cartwright and his team are in talks with a bank group led by Credit Suisse about amending a $30 million high-interest loan signed in March because AAC is violating some of that deal’s covenants.
In a separate regulatory filing, the AAC team didn’t specify its covenant shortfalls but said there are multiple issues with the loan, which among other things calls for the company to maintain a certain leverage ratio and have on hand at all times at least $5 million of cash, cash equivalents and undrawn revolving loans.
Shares of AAC (Ticker: AAC) fell 7.5 percent Monday to close at about 81 cents. They’ve lost about half their value so far this year.