March 15, 2017
Ardent Health Services of Nashville, TN obtained secured debt financing in the amount of $700 million, which was used to acquire LHP Hospital Group, headquartered in Plano TX. The five-year, LIBOR-based loan was arranged by Ventas Inc., and has an initial cash interest rate of approximately 8%.
Ardent also received a significant equity contribution from its majority owner, Equity Group Investments. Ventas also made an equity contribution to maintain its 9.9% equity stake in Ardent.
The acquisition makes Ardent Health the second largest private, for-profit hospital operator in the United States, with 19 hospitals in six states, and $3 billion in revenues.
Former LHP Interim CEO Paul Kappelman has been appointed executive vice president and chief operating officer for Ardent. David T. Vandewater will continue as Ardent’s CEO.
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