Ensign Ups Credit Facility to $800 Million in Latest Filing

The Ensign Group, Inc. (Nasdaq: ENSG) on Aug. 20 said it has amended its existing revolving Credit Facility with commitments totaling $800 million and extended the maturity date to Aug. 19, 2031. The amended credit facility provides enhanced liquidity and financial flexibility to support its ongoing growth strategy, including acquisitions, capital investments, and other general purposes, the company said.

"We are pleased to complete this financing with the strong support of our lending partners," said Barry Port, Ensign CEO. "This facility positions us well to continue pursuing opportunities that create long-term value for our stakeholders while maintaining our conservative approach to capital management."

Truist Bank serves as administrative agent for the Credit Facility, and the lending syndicate includes Citibank, N.A., The Huntington National Bank, U.S. Bank National Association, Wells Fargo Bank, N.A., Bank of America, N.A., BMO Bank, N.A., PNC National Bank, N.A., and Synovus Bank.

Ensign acquired 71 assets since the beginning of 2025 and is the largest skilled nursing chain in the country with 398 operations across 17 states.

Move Follows Earnings Strength

Ensign reported strong second-quarter earnings when it released its results on July 27. GAAP diluted earnings per share for the quarter was $1.68, an increase of 16.7 percent over the prior year quarter, and adjusted diluted earnings per share for the quarter was $1.92, an increase of 20.8 percent over the prior year quarter.

GAAP net income was $99.7 million for the quarter, an increase of 18.2 percent over the prior year quarter, and adjusted net income was $114.3 million for the quarter, an increase of 22.5 percent over the prior year quarter.

On the clinical side, the company highlighted the following:

-              Same facilities achieved CMS Quality Measure ratings that were 23 percent better than industry peers in its operating states.

-              Same facilities achieved CMS Cycle 1 survey inspection results that were 18 percent better than industry peers in its operating states.

-              Over 80 percent of Ensign’s skilled nursing operations earned a CMS Quality Measure rating of 4 or 5 stars, “demonstrating our continued commitment to delivering high-quality clinical care,” the company said.

-              Rehospitalization rates for same facilities were 15 percent better than the national average.

-              Long-stay outpatient emergency department visit rates for same facilities were 24 percent better than the national average, minimizing unnecessary hospital transfers and reducing higher-cost care.

-              Administrator turnover for same facilities was 46 percent lower than its industry peers in Ensign-operating states.

-              And the company said, “none of our 398 affiliated facilities are designated as CMS Special Focus Facilities, reflecting our ability to improve clinical performance at troubled acquisitions and consistently maintain trust from our state and federal regulators.”

Comments? Contact Patrick Connole at pconnole@parkplacelive.com.