Cotiviti Holdings completed the previously announced $900 million refinancing of its first and second lien term loans and revolving credit facility.
JPMorgan Chase, SunTrust Robinson Humphrey, Goldman Sachs Bank USA, Barclays Bank, Citigroup Global Markets, Credit Suisse Securities (USA), Morgan Stanley Senior Funding and RBC Capital Markets acted as joint lead arrangers and the joint bookrunners on the transaction.
The restated credit agreement is comprised of a $250 million term loan A due in September 2021, a $550 million term loan B due in September 2023 and a $100 million revolving credit facility due in September 2021. The proceeds from term loans A and B, and cash on hand, are being used to refinance Cotiviti’s existing first and second lien loans. After the refinancing, total debt outstanding is reduced to $800 million from $823 million at June 30, 2016.
With the exception of size, term, pricing and certain covenants, the restated credit agreement is substantially similar to Cotiviti’s previous credit agreement.
“We are very pleased with the successful refinancing of our credit facilities and the ability to improve our financial flexibility by reducing interest rates and extending maturities,” said Steve Senneff, CFO of Cotiviti. “Based on our June 30, 2016 net leverage of 3.5x pro forma for the refinancing, we have decreased our weighted average cost of debt 83 basis points to 3.54% from 4.37%.”
Cotiviti is a payment accuracy provider that helps healthcare payers and retailers achieve their business objectives.