DALLAS — Investment adviser Highland Capital Management, which has $22 billion in assets under management, announced last week it is now 100 percent owner of American Home Patient. The deal is the culmination of a series of transactions, including a self-tender of AHP's common shares and a restructuring of its senior debt of $216 million led by Highland that were completed on Sept. 2.
After missing a repayment date in August 2009 and entering a string of forbearance agreements with its debt holders, AHP announced earlier this year it would go private in a move to avoid bankruptcy. Founded in 1983, the Brentwood, Tenn.-based provider operates in 33 states.
Under Highland's ownership, AHP "will benefit from access to the financial and strategic resources necessary to help the company realize accelerated, profitable growth," according to a Highland release.
"Using a structured and proven approach to value creation, Highland will partner with management to build a long-term competitive advantage through differentiation in service quality and operational excellence. The American HomePatient transaction is a prime example of Highland's distressed investment strategy," the release continued. "Highland has a distinct ability to identify attractive investment opportunities designed to generate above-average returns over time."
According to Patrick Daugherty, head of private equity investments at Highland, "We believe that American HomePatient is well-positioned to benefit from the market changes caused by the government's competitive bidding program. The combination of the American HomePatient organization, products and services with our resources will enhance the company's long term value and success."