APM lines up $200m debt facility

APM Human Services has secured a further $200 million debt facility, taking its total debt to over $1 billion, after entering a series of acquisitions.

The Perth-founded company announced to the ASX it had entered into an agreement with Commonwealth Bank of Australia and Hongkong and Shanghai Banking Corporation to facilitate the funding capacity through a syndicated multi-currency revolving corporate facility.

The new debt facility is set to support APM’s future strategic growth opportunities in Australia and internationally.

The Perth-founded employment business has struck three deals since listing on the ASX 12 months ago.

Last week, it announced it would buy NDIS therapy provider Everyday Independence for more than $52 million.

Once this acquisition is completed in February 2023, APM said it would have more than 1,500 allied health professionals across 193 locations in Australia.

In September, APM entered an agreement to buy all shares in North America-based employment services provider Equus Workforce Solutions, moving APM into international markets.

APM is paying $225 million in cash for that company, which will be funded by its debt facility.

“During the first half of FY2023, we completed the acquisition of Equus in North America, which takes APM into 42 States and Territories in the United States and grows our presence in Canada, providing the platform to continue organically expanding in this large and diverse market,” Mr Anghie said.

APM bought physiotherapy and home care business Lifecare for $68 million in December 2021.

APM chief executive Michael Anghie said the company’s enhanced liquidity through the facilities and cash generation would provide additional acquisition opportunity capacity.

“Strategic acquisitions are a part of our strategy complementing our organic growth through contract wins, extensions and increasing market share through strong performance,” Mr Anghie said.

The new loan takes APM’s total debt facility to just over $1 billion, to be paid over a combination of three-year and five-year loan tenors.

The facility has been provided under a ‘social loan’ label, described by APM and lender CBA as a finance product aimed to support projects which address a social issue.

On the market, APM shares last traded at $2.42.