Simpson Thacher represented American Renal Associates Holdings, Inc. (“ARA”), a national dialysis services provider, in connection with its initial public offering of 8,625,000 shares of common stock (including shares sold pursuant to the underwriters’ option to purchase additional shares) at an initial public offering price of $22 per share. The shares began trading on the New York Stock Exchange under the ticker symbol “ARA” on April 21, 2016. The underwriting syndicate was led by BofA Merrill Lynch, Barclays and Goldman, Sachs & Co. The IPO closed on April 26, 2016.
Concurrently with the completion of the IPO, Simpson Thacher also represented ARA in connection with the amendment of its first lien credit facility to, among other things, increase revolver capacity to $100 million and provide for incremental term loan borrowings of $60 million.
ARA used the net proceeds of the IPO, together with the net proceeds from the incremental first lien term loans and available cash, to repay all outstanding amounts under its $240 million second lien term loan credit facility. Any remaining net proceeds will be used for general corporate purposes.
ARA, a Centerbridge portfolio company, is the largest dialysis services provider in the United States that operates exclusively through a physician joint venture model, in which it partners with local nephrologists to develop, own and operate dialysis clinics. As of December 31, 2015, ARA operated 192 dialysis clinic locations in 24 states and the District of Columbia, treating over 13,000 patients with end stage renal disease.
The Simpson Thacher team included Michael Nathan, Teresa Chen, Tony Rim, Katie McDonough and Ashley Yoon (Capital Markets); Caroline Gottschalk, Michael Holick and Kirsten Popoff (M&A); Brian Steinhardt, Benjamin Baucom and Jonathan Zane (Credit); Gregory Grogan, Douglas Tang and Nadine Mompremier (Executive Compensation and Employee Benefits); Gary Mandel, Jason Vollbracht and David Holmberg (Tax); and James Rapp and Shari Ness (Public Company Advisory Practice).