Earlier this week, Enhabit stock tumbled after the company entered into a limited waiver agreement with Wells Fargo Bank.
“As we work with our advisors and prospective strategic partners as part of our strategic review, out of an abundance of caution we chose to proactively reach out to our bank group to ensure we remain in compliance with our financial covenants,” Enhabit CEO Barb Jacobsmeyer said in a statement, explaining the move. “At this time, the company believes it has adequate liquidity. The company has not drawn on its revolving credit facility in 2023. As of Sept. 30, the company had total available liquidity of approximately $80 million, including cash and cash equivalents.”
After stock fell to an all-time low, close to $8 per share, AREX Capital Management – which owns about 4.7% of the company’s common shares – criticized Enhabit’s communication and urged a sale.
The Dallas-based Enhabit has 255 home health locations and 108 hospice locations across 34 states, Home Health Care News reports. Read more.
