Modivcare, a technology-enabled healthcare services company that provides a platform of integrated supportive care solutions focused on improving health outcomes, refinanced all outstanding $500 million aggregate principal amount of its 5.875% senior notes due 2025 with a new $525 million term loan B, which closed on July 1, 2024. The transaction addressed the company’s upcoming debt maturities and enhanced financial flexibility to ensure long-term value for our shareholders.
Refinancing Key Highlights:
- Syndicated a new $525 million term loan B, maturing in July 2031
- Oversubscribed with strong interest from existing and new investors
- Use of net proceeds to fully redeem all outstanding $500 million aggregate principal amount of the company’s 5.875% senior unsecured notes due in November 2025.
- Lenders comprising $255 million of the company’s $325 million revolving credit facility agreed to extend the maturity by an additional 12 months through February 2028 and reduce the minimum liquidity covenant from $100 million to $75 million. The full $325 million revolving credit facility remains accessible for use.
_x000D_
_x000D_
_x000D_
_x000D_
The refinancing was led by JPMorgan Chase Bank and respective roles supported by the company’s bank group. KKR Capital Markets acted as capital markets advisor and Gibson, Dunn & Crutcher served as legal counsel to the company.
