Signify Health, a healthcare platform that leverages advanced analytics, technology and nationwide healthcare networks to create and power value-based payment programs, completed a refinancing of its first lien term loans and revolving credit facility.
Signify Health entered into a new credit agreement comprised of a $350 million senior secured first lien term loan due in June 2028 and a $185 million senior secured revolving credit facility due in June 2026. The company will use proceeds from the new term loan and cash on hand to repay existing loans.
Barclays Bank acted as administrative agent and collateral agent for the new credit agreement. Barclays Bank, JPMorgan Chase, Goldman Sachs Bank, BofA Securities, UBS Securities and Deutsche Bank Securities acted as joint lead arrangers and joint bookrunners.
After the refinancing, Signify Health’s total debt outstanding will be reduced to $350 million from $411 million at March 31. Relative to the refinanced credit facility, the new credit facility reduces borrowing costs while increasing operating flexibility through less restrictive financial covenants and access to higher levels of revolver borrowings.
“We are pleased with the successful refinancing of our credit facilities, which reduces our annualized interest expense by approximately $10 million in the current interest rate environment and increases our overall financial flexibility with respect to covenants and liquidity,” Steve Senneff, CFO and president of Signify Health, said. “This refinancing positions Signify to continue to invest for future growth and drive increasing value to customers, partners and shareholders.”